NewMed Energy – Limited Partnership (TLV:NWMD) is managing its debt in a reasonable manner, according to four key measures. These indicators suggest that the company is utilizing debt effectively and responsibly. By analyzing these measures, investors can gain insight into the financial health of the company.
The first measure to consider is the debt-to-equity ratio. This ratio shows the proportion of debt to equity that a company has on its balance sheet. NewMed Energy – Limited Partnership has a debt-to-equity ratio of 0.45, which indicates that the company has a relatively low level of debt compared to its equity. This suggests that the company is not overly reliant on debt to finance its operations.
Another important measure is the interest coverage ratio. This ratio shows how easily a company can pay the interest on its outstanding debt. NewMed Energy – Limited Partnership has an interest coverage ratio of 5.34, which indicates that the company is generating enough operating income to cover its interest expenses. This suggests that the company is not at risk of defaulting on its debt payments.
The third measure to consider is the debt-to-EBITDA ratio. This ratio shows how many years it would take for a company to pay off its debt using its earnings before interest, taxes, depreciation, and amortization (EBITDA). NewMed Energy – Limited Partnership has a debt-to-EBITDA ratio of 2.17, which suggests that the company has a manageable level of debt relative to its earnings. This indicates that the company is not overly burdened by its debt obligations.
Lastly, the current ratio is a measure of a company’s ability to meet its short-term debt obligations. NewMed Energy – Limited Partnership has a current ratio of 1.23, which indicates that the company has enough current assets to cover its current liabilities. This suggests that the company is in a strong financial position and is able to meet its short-term debt obligations.
Overall, these four measures indicate that NewMed Energy – Limited Partnership is using debt reasonably well. By carefully managing its debt levels and ensuring that it has the ability to meet its debt obligations, the company is positioning itself for long-term financial success. Investors can take comfort in the fact that the company is taking a responsible approach to its debt management.