haven't looked at this site before... it's a quick analysis site...

haven't looked at this site before... it's a quick analysis site it looks like... have analysed STL.

https://simplywall.st/news/2017/08/...-asxstl-balance-sheet-a-threat-to-its-future/

Is Stargroup Limited’s (ASX:STL) Balance Sheet A Threat To Its Future?

Joel Foster  August 31, 2017
Stargroup Limited (ASX:STL) is a small-cap stock with a market capitalization of $14.51M. While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. There are always disruptions which destabilize an existing industry, in which most small-cap companies are the first casualties. Here are few basic financial health checks to judge whether a company fits the bill or there is an additional risk which you should consider before taking the plunge.Check out our latest analysis for Stargroup
Does STL generate enough cash through operations?



ASX:STL Historical Debt Aug 31st 17
Unxpected adverse events, such as natural disasters and wars, can be a true test of a company’s capacity to meet its obligations.These adverse events bring devastation and yet does not absolve the company from its debts.We can test the impact of these adverse events by looking at whether cash from its current operations can pay back its current debt obligations. In the case of STL, operating cash flow over the past twelve months do cover its current debt,which indicates extremely low risk of STL not being able to meet its debt near-team, given that it generates enough cash in a year to pay off its current debt.This is great news for both debtholders and shareholders, as the company exhibits cautious cash and debt management.

Can STL pay its short-term liabilities?



ASX:STL Net Worth Aug 31st 17
What about its commitments to other stakeholders such as payments to suppliers and employees? As cash flow from operation is hindered by adverse events, STL may need to liquidate its short-term assets to meet these upcoming payments. We test for STL’s ability to meet these needs by comparing its cash and short-term investments with current liabilities. Our analysis shows that STL is unable to meet all of its upcoming commitments with its cash and other short-term assets. While this is not abnormal for companies, as their cash is better invested in the business or returned to investors than lying around, it does bring about some concerns should any unfavourable circumstances arise.


Is STL’s level of debt at an acceptable level?


Debt-to-equity ratio tells us how much of the asset debtors could claim if the company went out of business. For STL, the debt-to-equity ratio is 8.18%, which means debt is low and does not pose any significant threat to the company’s operations.
Conclusion

Although STL’s debt level is relatively low, it has the ability to efficiently utilise its borrowings to generate ample cash flow coverage. Though, the company may not be able to pay all of its upcoming liabilities from its current short-term assets. Now that you know to keep debt in mind when putting together your investment thesis, I recommend you check out our latest free analysis report on Stargroup to see what other factors for STL you should consider.
PS. If you are not interested in Stargroup anymore, you can use our free platform to see my list of over 150 other stocks with a high growth potential.