Small caps and large caps are popular among investors, but mid caps such as Littelfuse Inc (NASDAQ: LFUS), which has a market capitalization of $ 460 million, are not easy to attract attention in the investment community.
Surprisingly, given the risks, medium-sized stocks made better returns than two other stocks.
Today, we will look at LFUS's financial liquidity and debt levels, a strong indicator of whether it can weather the recession or invest in strategic acquisitions for future growth.
This information is entirely focused on financial soundness and is at the highest level of understanding, so please take a closer look
Here on LFUS.
Get the latest analysis on Littelfuse.
How much cash does LFUS generate through operations?
LFUS raised its total debt level from US $ 502m to US $ 7100m over the past 12 months.
Current and long-term liabilities.
LFUS's cash and short-term investments were $ 488 million
Invest in your business.
It is in LFUS.
Operating cash flow of $ 340 million
During the last 12 months,
Operating cash to total debt ratio 49%
Debt is appropriately compensated by operating cash.
This ratio may be a signal of operational efficiency.
As an alternative to asset return
For LFUS, you can generate 0.49 times cash from your debt capital.
Can LFUS pay short-term debt?
Debt At current debt levels of $ 340 million,
We were able to fulfill this obligation given the current assets of $ 110 million, now at 3.46 times the level of assets.
Some investors may consider the amount over three times excessive. They can claim that LFUS leaves too much capital for low-income investments.
Can LFUS process debts smoothly?
LFUS is a relatively superior company with a debt ratio of 46%.
Given that liabilities tend to be more accessible from time to time at lower costs, this is not uncommon for medium-sized businesses.
You can see if LFUS can see the net interest coverage rate and fulfill your obligations. A company that generates more than three times the net interest payment before interest and taxes (EBIT) is considered financially sound. In the case of LFUS,
13.81x means that interest is comfortably covered,
Debtors can lend more money to the company and LFUS can provide enough headroom to increase debt facilities.
LFUS's high cash compensation means that you can use your debt efficiently to generate cash flow, although you have a high debt level.
This is the optimal capital structure, given that it also meets short-term commitments.
This is only a rough estimate of financial soundness, and I am confident that LFUS will have company-specific issues that affect capital structure decisions.
You have to.
Continuing to study Littelfuse
- Outlook: What industry analysts are familiar with the future growth of LFUS? Take a look at the free research report on analyst agreement on LFUS prospects.
- evaluationWhat is the value of LFUS today? Even when its growth prospects break down into its intrinsic value, was the stock underestimated? The intrinsic value infographic in our free study report helps to visualize whether LFUS is currently priced by the market.
- Other high growth stocks: Are there other stocks that offer better prospects with proven performance? Find a free list of these great stocks here.
To help readers see short-term volatility in financial markets, we want to provide long-term, intensive research analysis that is driven purely by underlying data. Our analysis did not take into account the latest price-sensitive company announcements.
The authors are independent contributors and do not have the status of shares mentioned at the time of publication. For errors that require correction, please contact the editor at [email protected]
Daniel Loeb has earned 16.2% a year for the last 20 years. What does he carry today?
Event-Driven Value-Oriented Hedge Funds Founder of Third Point, Daniel Loeb is one of the most successful activist investors on the market today. Take a look at your portfolio's top assets and see how he diversifies his investments, past performance and growth forecasts. For a detailed infographic analysis of Daniel Loeb's investment portfolio, click here.