Liabilities Breakdown
13.6 M
Current Liabilities
36.2 M
Long-Term Liabilities
| Total Liabilities | 49.83 Million | |
| Current Liabilities | 13.63 Million | |
| Long-Term Liabilities | 36.2 Million |
Should I hold on to my Good Times (NASDAQ:GTIM) position?
 | By Ellen Johnson | Macroaxis Story |
The stock continues to experience an active upward rally. As many investors are getting excited about consumer cyclical space, it is fair to summarize Good Times Restaurants as an investment option. We will analyze why Good Times investors may still consider a stake in the business. Here we also measure the ability of Good Times to meet its long-term debt obligations, such as interest payments on debt, the final principal payment on the debt, and any other fixed obligations like lease payments.
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Reviewed by Raphi Shpitalnik
The company currently holds 75.56 M in liabilities with Debt to Equity (D/E) ratio of 5.04, indicating the firm may have difficulties to generate enough cash to satisfy its financial obligations. Good Times Restaurants has a current ratio of 0.71, indicating that it has a negative working capital and may not be able to pay financial obligations when due. About 26.0% of the company shares are held by company insiders. The book value of Good Times was currently reported as 1.09. Good Times Restaurants recorded a loss per share of 1.11. The entity had not issued any dividends in recent years. The firm had 1:3 split on the 31st of December 2010. Good Times financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Good Times, including all of Good Times's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Good Times assets, the company is considered highly leveraged. Understanding the composition and structure of overall Good Times debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.
Understanding Good Total Liabilities
Good Times Restaurants liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Good Times Restaurants has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Good Times balance sheet include debt obligations and money owed to different Good Times vendors, workers, and loan providers. Below is the chart of Good short long-term liabilities accounts currently reported on its balance sheet. You can use Good Times Restaurants financial leverage analysis tool to get a better grip on understanding its financial positionHow important is Good Times's Liquidity
Good Times financial leverage refers to using borrowed capital as a funding source to finance Good Times Restaurants ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Good Times financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Good Times' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Good Times' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Good Times's total debt and its cash.
Breaking down the case for Good Times
The entity reported the previous year's revenue of 109.86 M. Net Loss for the year was (13.92 M) with profit before overhead, payroll, taxes, and interest of 17.77 M.
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