Sky Solar Story

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SKYS -- USA Stock  

USD 5.93  0.09  1.50%

The stock is currently experiencing an active upward rally. While some of us are becoming more enthusiastic about utilities space, let's sum up Sky Solar Holdings in greater detail to make a better estimate of its debt utilization. We will check if the company can maintain a respectable level of debt while minimizing operating losses.
Published over a month ago
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Will latest Sky Solar (NASDAQ:SKYS) debt levels change before the next press release?
The entity currently holds 252.88 M in liabilities with Debt to Equity (D/E) ratio of 6.82, indicating Sky Solar may have difficulties to generate enough cash to satisfy its financial obligations. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Sky Solar has an asset utilization ratio of 13.56 percent. This connotes that the company is making $0.14 for each dollar of assets. An increasing asset utilization means that Sky Solar Holdings is more efficient with each dollar of assets it utilizes for everyday operations.
Sky Solar financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Sky Solar, including all of Sky Solar'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 Sky Solar assets, the company is considered highly leveraged. Understanding the composition and structure of overall Sky Solar 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.

How important is Sky Solar's Liquidity

Sky Solar financial leverage refers to using borrowed capital as a funding source to finance Sky Solar Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Sky Solar 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. Please check the breakdown between Sky Solar's total debt and its cash.

How Sky Solar utilizes its cash?

To perform a cash flow analysis of Sky Solar, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Sky Solar is receiving and how much cash it distributes out in a given period. The Sky Solar cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Another Deeper Perspective

The firm reported the previous year's revenue of 48.95 M. Net Loss for the year was (42.06 M) with profit before overhead, payroll, taxes, and interest of 27.06 M.

Over 3 percent spike for Sky Solar. What does it mean for retail investors?

Semi variance is down to 47.04. It may connote a possible volatility fall. Sky Solar Holdings is displaying above-average volatility over the selected time horizon. Investors should scrutinize Sky Solar Holdings independently to ensure intended market timing strategies are aligned with expectations about Sky Solar volatility.

Our Final Take On Sky Solar

While some other entities within the utilities?renewable industry are still a little expensive, even after the recent corrections, Sky Solar may offer a potential longer-term growth to retail investors. The bottom line, as of the 15th of August 2020, our primary 30 days 'Buy-vs-Sell' recommendation on the enterprise is Strong Sell. However, we believe Sky Solar is undervalued with below average probability of financial unrest for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Sky Solar Holdings. Please refer to our Terms of Use for any information regarding our disclosure principles.

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