MRF Limited Total Debt vs. Working Capital Fundamental Analysis
MRF Limited is considered to be number one stock in working capital category among related companies. It is rated top company in total debt category among related companies making up about 1.06 of Total Debt per Working Capital. Working Capital is measure of company efficiency and operating liquidity. The working capital is usually calculated by subtracting Current Liabilities from Current Assets. It is important indicator of the firm ability to continue its normal operations without additional debt obligations. .
Working Capital can be positive or negative, depending on how much of current debt the company is carrying on its balance sheet. In general terms, companies that have a lot of working capital will experience more growth in the near future since they can expand and improve their operations using existing resources. On the other hand, companies with small or negative working capital may lack the funds necessary for growth or future operation. Working Capital also shows if the company has sufficient liquid resources to satisfy short-term liabilities and operational expenses.Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principle payments will eventually prevent the firm from borrow excessively.
In most industries, total debt may also include current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meaningful to compare total debt amounts between companies that operate within the same sector.MRF Limited is rated top company in total debt category among related companies. Total debt of Rubber & Plastics industry is now estimated at about 15.46 Billion. MRF totals roughly 7.73 Billion in total debt claiming about 50% of equities listed under Rubber & Plastics industry.
MRF Fundamental Comparison