Top glove share price

Why Does Debt Bring Risk? Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. Part and parcel ...

While it is always sensible to investigate a company's debt, in this case Top Glove Corporation Bhd has RM551.3m in net cash and a decent-looking balance sheet. But it is future earnings, more than anything, that will determine Top Glove Corporation Bhd's ability to maintain a healthy balance sheet going forward. During the last three years, Top Glove Corporation Bhd produced sturdy free cash flow equating to 67% of its EBIT, about what we'd expect. The latest balance sheet data shows that Top Glove Corporation Bhd had liabilities of RM941.8m due within a year, and liabilities of RM318.9m falling due after that. Succinctly put, Top Glove Corporation Bhd boasts net cash, so it's fair to say it does not have a heavy debt load! This article by Simply Wall St is general in nature. Alternatively, email editorial-team (at) simplywallst.com. When analysing debt levels, the balance sheet is the obvious place to start. You can click the graphic below for the historical numbers, but it shows that Top Glove Corporation Bhd had RM399.1m of debt in August 2022, down from RM458.7m, one year before. It is just as well that Top Glove Corporation Bhd's load is not too heavy, because its EBIT was down 96% over the last year. What we care about is avoiding the permanent loss of capital.' It's only natural to consider a company's balance sheet when you examine how risky it is, since debt is often involved when a business collapses. Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow.