![]() Zooming in on the latest balance sheet data, we can see that Fission Uranium had liabilities of CA$2.77m due within 12 months and liabilities of CA$9.16m due beyond that. However, its balance sheet shows it holds CA$55.9m in cash, so it actually has CA$48.7m net cash.ĭebt-equity-history-analysis How Healthy Is Fission Uranium's Balance Sheet? You can click the graphic below for the historical numbers, but it shows that Fission Uranium had CA$7.13m of debt in June 2021, down from CA$10.7m, one year before. See our latest analysis for Fission Uranium What Is Fission Uranium's Net Debt? ![]() The first step when considering a company's debt levels is to consider its cash and debt together. Of course, debt can be an important tool in businesses, particularly capital heavy businesses. While that is not too common, we often do see indebted companies permanently diluting shareholders because lenders force them to raise capital at a distressed price. In the worst case scenario, a company can go bankrupt if it cannot pay its creditors. What Risk Does Debt Bring?ĭebt is a tool to help businesses grow, but if a business is incapable of paying off its lenders, then it exists at their mercy. ![]() ![]() But the real question is whether this debt is making the company risky. As with many other companies Fission Uranium Corp. The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says 'The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.' So it seems the smart money knows that debt - which is usually involved in bankruptcies - is a very important factor, when you assess how risky a company is. ![]()
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