Debt Overview of Golden Ocean Group – Golden Ocean Group (NASDAQ: GOGL)

Shares of Golden Ocean Group Inc. gogl There was an increase of 15.37% in the last three months. When looking to understand the change in prices of a company over a time period such as 3 months, it can be helpful to look at its financials. A major aspect of a company’s financial health is its debt, but before we delve into the importance of debt, let’s see how much debt Golden Ocean Group has.

golden ocean group date

Based on Golden Ocean Group’s financial statement as of March 24, 2022, long-term debt is $1.26 billion and current debt is $127.62 million, totaling $1.39 billion in debt. Adjusted for $197.03 million in cash-equivalents, the company’s net debt is $1.19 billion.

Let us define some of the terms we have used in the above paragraphs. current loan is the portion of the debt of a company which is payable within 1 year, while long term debt Part payable in more than 1 year. cash equivalents Includes cash and any liquid securities with a maturity of 90 days or less. total debt Current debt is equal to long-term debt minus cash equivalents.

To understand a company’s degree of financial leverage, investors look at the debt ratio. Considering Golden Ocean Group’s total assets of $3.45 billion, the debt-to-equity ratio stands at 0.4. As a rule of thumb, a debt-to-equity ratio greater than 1 indicates that a large portion of the debt is financed by assets. A high debt-to-equity ratio can also mean that the company may be putting itself at risk for default if interest rates rise. However, debt ratios vary widely among different industries. A debt ratio of 25% may be high for one industry, but average for another.

importance of credit

In addition to equity, debt is an important factor in a company’s capital structure, and contributes to its growth. Due to its lower funding cost compared to equity, it becomes an attractive option for executives trying to raise capital.

However, due to interest payment obligations, the company’s cash flow may be affected. Having financial leverage allows companies to access additional capital for business operations, allowing equity owners to retain additional profits generated by debt capital.

Looking for stocks with low debt-to-equity ratio? Check out Benzinga Pro, a market research platform that gives investors near-instantaneous access to dozens of stock metrics — including the debt-to-equity ratio. Click here to know more,

This article was generated by Benzinga’s automated content engine and reviewed by an editor.

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