Debt-to-Equity Ratio: The company’s debt-to-equity ratio is...

• Debt-to-Equity Ratio: The company’s debt-to-equity ratio is 115.4%. This indicates that Kingsgate Consolidated has more debt relative to its equity. A high debt-to-equity ratio can be a concern for investors.

• Interest Coverage Ratio: The interest coverage ratio is 4.7, which means the company’s earnings before interest and taxes (EBIT) can cover its interest payments nearly five times over. A higher interest coverage ratio is generally favorable.

• Cash Position: Kingsgate Consolidated has A$9.8 million in cash and short-term investments. A healthy cash position provides liquidity and financial flexibility.

• Short-Term and Long-Term Liabilities: The company’s short-term assets exceed its short-term liabilities, and its short-term assets also exceed its long-term liabilities. This suggests a relatively stable financial position.

• Net Debt to Equity: The net debt to equity ratio is 86.3%, which is considered high. However, it has improved over the past five years from negative shareholder equity to positive.

• Operating Cash Flow: The operating cash flow is negative, indicating that debt is not well covered by cash flow.

In summary, while Kingsgate Consolidated has made progress in reducing debt and improving its financial position, investors should closely monitor its debt levels and cash flow. I for instance consider this a bargain stock with truly little downside over a 3-year period especially when Plant #1 is fully operational!