What Investors Should Know About Bassari Resources Limited’s (ASX:BSR) Financial Strength

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Is BSR’s debt level acceptable?

BSR’s level of debt is low relative to its total equity, at 1.42%. This range is considered safe as BSR is not taking on too much debt obligation, which may be constraining for future growth. Investors’ risk associated with debt is virtually non-existent with BSR, and the company has plenty of headroom and ability to raise debt should it need to in the future.

Next Steps:

Although BSR’s debt level is relatively low, its cash flow levels still could not copiously cover its borrowings. This may indicate room for improvement in terms of its operating efficiency. In addition to this, its low liquidity raises concerns over whether current asset management practices are properly implemented for the small-cap. Keep in mind I haven’t considered other factors such as how BSR has been performing in the past. I recommend you continue to research Bassari Resources to get a better picture of the stock by looking at:

• 1. Historical Performance: What has BSR’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
• 2. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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.