RE:RE:RE:Interest RatesBudFoxx2020 wrote: Lol their debt is not $239,852. That is completely inaccurate. Monty spinning things around as usual. Lololol. The whole market is dead money in a bear market. Hope some of you went long on oil with the war going on. It was easy money. Not proud about it but it is what it is.
Debt as of Sept 30 was $311.5M precisely (note 14). Interest expense was $3.1M, of which $2.1M was related to loans (note 7). Using those figures, their net interest rate for the period was 2.7%.
If they were to keep the same exact debt level, every 1% raise in interests would result in extra $0.8M in interests.
Considering their cashflow before working capital changes of $18.7M in Q3 (and of $8.1M after working capital changes... note however that working capital changes year over year is usually the reflection of changes in the revenues).
So, with stable current revenues, it would take an increase of 23% in the interest rates without them ever fixing it (through a credit swap) before they turn cashflow negative.