Rotten Tomato Stocks
No Result
View All Result
  • News
    Samsung’s Profit Plummets Amid Global Economic Woes

    Samsung’s Profit Plummets Amid Global Economic Woes

    Stocks Sink as Markets Brace for Big Week With Fed, Earnings

    Stocks Sink as Markets Brace for Big Week With Fed, Earnings

    Low-Cost Fashion Chain H&M Reports 4th-Quarter Loss

    Low-Cost Fashion Chain H&M Reports 4th-Quarter Loss

    Dow profit and sales fall short of estimates, aims to cut $1 billion in costs in 2023

    Dow profit and sales fall short of estimates, aims to cut $1 billion in costs in 2023

  • NYSE
    Caterpillar stock falls after profit misses expectations, while revenue beats

    Caterpillar stock falls after profit misses expectations, while revenue beats

    Ameren Corp. stock falls Tuesday, underperforms market

    Ameren Corp. stock falls Tuesday, underperforms market

    Ford Motor (NYSE:F) Short Interest Down 5.6% in January

    Ford Motor (NYSE:F) Short Interest Down 5.6% in January

    Johnson & Johnson, Chevron share losses lead Dow’s 261-point drop

    Johnson & Johnson, Chevron share losses lead Dow’s 261-point drop

  • NASDAQ
    Super Micro stock falls after weaker sales guidance for fiscal Q3

    Super Micro stock falls after weaker sales guidance for fiscal Q3

    Western Digital Corp. stock falls Tuesday, underperforms market

    Western Digital Corp. stock falls Tuesday, underperforms market

    Datadog, Inc. (NASDAQ:DDOG) Sees Large Drop in Short Interest

    Datadog, Inc. (NASDAQ:DDOG) Sees Large Drop in Short Interest

    Orchestra BioMed Down Almost 17% on Second Day of Nasdaq Trading

    Orchestra BioMed Down Almost 17% on Second Day of Nasdaq Trading

  • OTC
    China Eastern Airlines 3Q Loss Widens on Low Travel Demand

    China Eastern Airlines 3Q Loss Widens on Low Travel Demand

    Corus Entertainment 4Q Profit Falls

    Corus Entertainment 4Q Profit Falls

    Nintendo Co. Ltd. ADR falls Monday, still outperforms market

    Nintendo Co. Ltd. ADR falls Monday, still outperforms market

    Ocado Group PLC Revenue of Ocado Retail in Q3 Fell 10.6%

    Ocado Group PLC Revenue of Ocado Retail in Q3 Fell 10.6%

  • TSX
    US Seeks to Fine Air Canada $25.5 Million Over Slow Refunds

    US Seeks to Fine Air Canada $25.5 Million Over Slow Refunds

    S&P/TSX composite falls on drop in materials sector, loonie tops 81 cents US

    S&P/TSX composite falls on drop in materials sector, loonie tops 81 cents US

    Bitcoin Is Falling: Should You Buy the Dip?

    Bitcoin Is Falling: Should You Buy the Dip?

    CN Rail Stock Is So Undervalued That it’s Absurd

    CN Rail Stock Is So Undervalued That it’s Absurd

  • News
    Samsung’s Profit Plummets Amid Global Economic Woes

    Samsung’s Profit Plummets Amid Global Economic Woes

    Stocks Sink as Markets Brace for Big Week With Fed, Earnings

    Stocks Sink as Markets Brace for Big Week With Fed, Earnings

    Low-Cost Fashion Chain H&M Reports 4th-Quarter Loss

    Low-Cost Fashion Chain H&M Reports 4th-Quarter Loss

    Dow profit and sales fall short of estimates, aims to cut $1 billion in costs in 2023

    Dow profit and sales fall short of estimates, aims to cut $1 billion in costs in 2023

  • NYSE
    Caterpillar stock falls after profit misses expectations, while revenue beats

    Caterpillar stock falls after profit misses expectations, while revenue beats

    Ameren Corp. stock falls Tuesday, underperforms market

    Ameren Corp. stock falls Tuesday, underperforms market

    Ford Motor (NYSE:F) Short Interest Down 5.6% in January

    Ford Motor (NYSE:F) Short Interest Down 5.6% in January

    Johnson & Johnson, Chevron share losses lead Dow’s 261-point drop

    Johnson & Johnson, Chevron share losses lead Dow’s 261-point drop

  • NASDAQ
    Super Micro stock falls after weaker sales guidance for fiscal Q3

    Super Micro stock falls after weaker sales guidance for fiscal Q3

    Western Digital Corp. stock falls Tuesday, underperforms market

    Western Digital Corp. stock falls Tuesday, underperforms market

    Datadog, Inc. (NASDAQ:DDOG) Sees Large Drop in Short Interest

    Datadog, Inc. (NASDAQ:DDOG) Sees Large Drop in Short Interest

    Orchestra BioMed Down Almost 17% on Second Day of Nasdaq Trading

    Orchestra BioMed Down Almost 17% on Second Day of Nasdaq Trading

  • OTC
    China Eastern Airlines 3Q Loss Widens on Low Travel Demand

    China Eastern Airlines 3Q Loss Widens on Low Travel Demand

    Corus Entertainment 4Q Profit Falls

    Corus Entertainment 4Q Profit Falls

    Nintendo Co. Ltd. ADR falls Monday, still outperforms market

    Nintendo Co. Ltd. ADR falls Monday, still outperforms market

    Ocado Group PLC Revenue of Ocado Retail in Q3 Fell 10.6%

    Ocado Group PLC Revenue of Ocado Retail in Q3 Fell 10.6%

  • TSX
    US Seeks to Fine Air Canada $25.5 Million Over Slow Refunds

    US Seeks to Fine Air Canada $25.5 Million Over Slow Refunds

    S&P/TSX composite falls on drop in materials sector, loonie tops 81 cents US

    S&P/TSX composite falls on drop in materials sector, loonie tops 81 cents US

    Bitcoin Is Falling: Should You Buy the Dip?

    Bitcoin Is Falling: Should You Buy the Dip?

    CN Rail Stock Is So Undervalued That it’s Absurd

    CN Rail Stock Is So Undervalued That it’s Absurd

No Result
View All Result
Rotten Tomato Stocks
No Result
View All Result

ReneSola (NYSE:SOL) Has Debt But No Earnings; Should You Worry?

Editorial Staff by Editorial Staff
July 16, 2021
0
ReneSola (NYSE:SOL) Has Debt But No Earnings; Should You Worry?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously said that ‘Volatility is far from synonymous with risk.’ It’s only natural to consider a company’s balance sheet when you examine how risky it is, since debt is often involved when a business collapses. We can see that ReneSola Ltd (NYSE:SOL) does use debt in its business. But the real question is whether this debt is making the company risky.

When Is Debt Dangerous?

Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. Ultimately, if the company can’t fulfill its legal obligations to repay debt, shareholders could walk away with nothing. However, a more common (but still painful) scenario is that it has to raise new equity capital at a low price, thus permanently diluting shareholders. By replacing dilution, though, debt can be an extremely good tool for businesses that need capital to invest in growth at high rates of return. When we examine debt levels, we first consider both cash and debt levels, together.

What Is ReneSola’s Debt?

The image below, which you can click on for greater detail, shows that ReneSola had debt of US$11.8m at the end of March 2021, a reduction from US$42.0m over a year. However, it does have US$301.0m in cash offsetting this, leading to net cash of US$289.2m.

debt-equity-history-analysis
NYSE:SOL Debt to Equity History July 16th 2021

How Strong Is ReneSola’s Balance Sheet?

We can see from the most recent balance sheet that ReneSola had liabilities of US$51.1m falling due within a year, and liabilities of US$58.9m due beyond that. Offsetting these obligations, it had cash of US$301.0m as well as receivables valued at US$36.0m due within 12 months. So it can boast US$227.0m more liquid assets than total liabilities.

This surplus strongly suggests that ReneSola has a rock-solid balance sheet (and the debt is of no concern whatsoever). On this view, lenders should feel as safe as the beloved of a black-belt karate master. Simply put, the fact that ReneSola has more cash than debt is arguably a good indication that it can manage its debt safely. The balance sheet is clearly the area to focus on when you are analysing debt. But it is future earnings, more than anything, that will determine ReneSola’s ability to maintain a healthy balance sheet going forward.

In the last year ReneSola had a loss before interest and tax, and actually shrunk its revenue by 46%, to US$69m. To be frank that doesn’t bode well.

So How Risky Is ReneSola?

While ReneSola lost money on an earnings before interest and tax (EBIT) level, it actually booked a paper profit of US$9.1m. So when you consider it has net cash, along with the statutory profit, the stock probably isn’t as risky as it might seem, at least in the short term. With mediocre revenue growth in the last year, we’re don’t find the investment opportunity particularly compelling. The balance sheet is clearly the area to focus on when you are analysing debt. 

Related Posts

Caterpillar stock falls after profit misses expectations, while revenue beats
NYSE

Caterpillar stock falls after profit misses expectations, while revenue beats

February 1, 2023
Ameren Corp. stock falls Tuesday, underperforms market
NYSE

Ameren Corp. stock falls Tuesday, underperforms market

February 1, 2023
Ford Motor (NYSE:F) Short Interest Down 5.6% in January
NYSE

Ford Motor (NYSE:F) Short Interest Down 5.6% in January

February 1, 2023
Johnson & Johnson, Chevron share losses lead Dow’s 261-point drop
NYSE

Johnson & Johnson, Chevron share losses lead Dow’s 261-point drop

January 31, 2023
Load More
Next Post
Snap Inc. stock falls Thursday, underperforms market

Snap Inc. stock falls Thursday, underperforms market

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

POPULAR NEWS

CNH Industrial (NYSE:CNHI) Use Of Debt Could Be Considered Risky

CNH Industrial (NYSE:CNHI) Use Of Debt Could Be Considered Risky

April 14, 2021
CN Rail Stock Is So Undervalued That it’s Absurd

CN Rail Stock Is So Undervalued That it’s Absurd

May 2, 2021
US Seeks to Fine Air Canada $25.5 Million Over Slow Refunds

US Seeks to Fine Air Canada $25.5 Million Over Slow Refunds

June 17, 2021
Ocado Group PLC Revenue of Ocado Retail in Q3 Fell 10.6%

Ocado Group PLC Revenue of Ocado Retail in Q3 Fell 10.6%

September 14, 2021
10 Warning Signs That Should Tell You “This Stock is in Trouble”

10 Warning Signs That Should Tell You “This Stock is in Trouble”

November 11, 2019

EDITOR'S PICK

BCE Inc. stock falls Thursday, underperforms market

BCE Inc. stock falls Thursday, underperforms market

December 24, 2021
AT&T leads wireless stocks lower after company ‘reinforced market fears’ about the cost of growth

AT&T leads wireless stocks lower after company ‘reinforced market fears’ about the cost of growth

December 1, 2021
FedEx (FDX) Stock Sinks As Market Gains: What You Should Know

FedEx (FDX) Stock Sinks As Market Gains: What You Should Know

January 28, 2020
EPAM Systems (NYSE:EPAM) Seems To Use Debt Rather Sparingly

EPAM Systems (NYSE:EPAM) Seems To Use Debt Rather Sparingly

April 15, 2021

Stay Updated

Get breaking news delivered straight into your inbox

Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Rotten Tomato stocks is a wholly-owned subsidiary of Grainne Capital Limited.
While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

Rotten Tomato Stocks cover the companies and markets that are declining, failing or headed for disaster. We help investors spot the down tends and recognize when something smells rotten.

RECENT POSTS

Samsung’s Profit Plummets Amid Global Economic Woes

Caterpillar stock falls after profit misses expectations, while revenue beats

Ameren Corp. stock falls Tuesday, underperforms market

POPULAR POSTS

Ford Motor (NYSE:F) Short Interest Down 5.6% in January

Super Micro stock falls after weaker sales guidance for fiscal Q3

Western Digital Corp. stock falls Tuesday, underperforms market

© Copyright 2021 RottenTomatoStocks. All Rights Reserved 

Disclaimer | Privacy Policy

No Result
View All Result
  • HOME
  • NEWS
  • NYSE
  • NASDAQ
  • OTC
  • TSX

© 2021 RottenTomatoStocks.com

error: Content is protected !!
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.