| Is Gem Diamonds Limited (LSE:GEMD) A Financially Sound Company? | |
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Can GEMD service its debt comfortably?With a debt-to-equity ratio of 16.14%, GEMD’s debt level may be seen as prudent. GEMD is not taking on too much debt commitment, which may be constraining for future growth. Investors’ risk associated with debt is very low with GEMD, and the company has plenty of headroom and ability to raise debt should it need to in the future. Next Steps:Are you a shareholder? GEMD’s high cash coverage and low debt levels indicate its ability to utilise its borrowings efficiently in order to generate ample cash flow. In addition to this, the company will be able to pay all of its upcoming liabilities from its current short-term assets. Going forward, its financial position may change. You should always be researching market expectations for GEMD’s future growth on our free analysis platform. Are you a potential investor? Although GEMD’s debt level is relatively low, it has the ability to efficiently utilise its borrowings to generate ample cash flow coverage. Furthermore, its high liquidity means the company should continue to operate smoothly in the case of adverse events. In order to build your conviction in the stock, you need to also examine the company’s track record. You should continue your analysis by taking a look at GEMD’s past performance analysis on our free platform to figure out GEMD’s financial health position. To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
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Gem diamonds limited
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PRODUCER |
CODE : GEMD.L |
ISIN : VGG379591065 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Gem Diamonds is a diamonds producing company based in United kingdom. Its main assets in production are ELLENDALE in Australia and LETSENG in Lesotho, its main assets in development are GOPE in Botswana, CEMPAKA in Indonesia and MAMBÉRÉ in Central African Republic and its main exploration properties are CHIRI in Angola and MBELENGE and LUBEMBE in Congo Dem. Rep. of. Gem Diamonds is listed in United Kingdom. Its market capitalisation is GBX 1.2 billions as of today (US$ 1.4 billions, € 1.3 billions). Its stock quote reached its highest recent level on February 08, 2008 at GBX 993.50, and its lowest recent point on April 24, 2024 at GBX 8.50. Gem Diamonds has 138 361 000 shares outstanding. |