Australia's largest stock trading and investment forum Australia's #1 stock forum

DVR

Click for more information

0.00%

$1.15 diverger limited

The business does have borrowings a $10m facility of which $2.2m...

First 5 Last

Share
Profile

Follow
firsova

5,978 Posts.

96

01/08/22

13:35

Post #: 62854973
Share

Originally posted by StephenB: ↑

While, as a rule of thumb, current assets should normally exceed current liabilities, I don't see any solvency issue in this case.
The business has $2.5m in the bank and strong cashflows - far in excess of dividend payments - and no borrowings whatsoever.
As noted in their 2021 annual report re "Liquidity Risk" (with similar quick ratio at that time):
"To help mitigate these risks the Group attempts to ensure the entity has accessible liquidity in the form of cash and access to bank financing."
Why use bank credit and pay interest just to make the accounting ratios prettier, when you can simply have a line of credit at the ready if needed?

Given the ongoing earnings growth DVR seems like an absolute bargain to me at these prices.

Expand

The business does have borrowings a $10m facility of which $2.2m is drawn

DVR Price at posting: 95.0¢ Sentiment: Hold Disclosure: Not Held
Upvote

0 Great analysis

Reply

Top Stories

PGD

Peregrine extends high-grade gold shoot, sniffs anomalism at WA's Tin Can

PXX

Polarx discovers thick sulphide mineralisation at Alaskan Cu project

IBG

Ironbark eyes lithium and niobium opportunities with 7 new Brazilian projects

SS1

Sun Silver gets that drill to thrill feeling from high grade hits at Maverick Spring

ASX200 dives as inflation clocks in at 4% – higher than 3.8% consensus

There are more pages in this discussion • 12 more messages in this thread...

First 5 Last

Add DVR (ASX) to my watchlist