Fabnaps - Look at the ratio belowI am certain thar you know the answer to that question. I am absolutely certain that you know the answer. Nevertheless let us discuss this:
The current Long Term Debt to Total Capital Ratio BEFORE THE PARTIAL CONVERSION OF SECURED CONVERTABLE NOTES plus CASH FROM THE RIGHTS OFFERING is below:
Lng Trm Debt - Total Capital 0.31
A long term debt to capitalization ratio which is greater than 1.0 indicates that the business has more debts than capital which is not a good thing for a business as it can lead to lots of financial problems, especially the company getting bankrupt. A high long term debt to capitalization ratio would indicate the financial weakness of the firm and the debt would most likely increase the risk of the company.
- However it is 0.31 before considerations of the Rights Offering
- And the Partial Conversion of Secured Convertable Notes