Golden Matrix Group has $4.48 million in liabilities and a very low debt-to-equity ratio of 0.01. This might indicate the company isn't fully leveraging borrowing opportunities. With a current ratio of 5.41, the company appears to have ample liquidity to meet its financial obligations. It's important to evaluate Golden Matrix's debt in conjunction with its cash reserves and equity to get a complete picture of its financial health.
Main Points
Investors considering leveraging Golden Matrix Group (NASDAQ: GMGI) should note the company's Total Revenue of
44.2M against a Cost of Revenue of
34.3M, which highlights a tight margin that could impact profitability. Additionally, with Total Current Liabilities at
4.5M, the company's ability to manage its debt obligations is crucial for those using leverage to invest.
Golden Matrix financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Golden Matrix, including all of Golden Matrix'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 Golden Matrix assets, the company is considered highly leveraged. Understanding the
composition and structure of overall Golden Matrix 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 Golden Total Debt
Golden Matrix Group liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Golden Matrix Group 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 Golden Matrix balance sheet include debt obligations and money owed to different Golden Matrix vendors, workers, and loan providers. Below is the chart of Golden main long-term debt accounts currently reported on its balance sheet.
You can use Golden Matrix Group
financial leverage analysis tool to get a better grip on understanding its financial position
How important is Golden Matrix's Liquidity
Golden Matrix
financial leverage refers to using borrowed capital as a funding source to finance Golden Matrix Group ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Golden Matrix 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 Golden Matrix's 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 Golden Matrix's 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 Golden Matrix's total debt and its cash.
What is driving Golden Matrix Investor Appetite?
The entity reported the previous year's revenue of 44.17
M. Net Loss for the year was (1.17
M) with profit before overhead, payroll, taxes, and interest of 9.16
M.
Asset Breakdown
15.4 M
Non Current Assets Total
27.6 M
Total Current Assets
16.6 M
Net Tangible Assets
| Total Assets | 42.97 Million |
| Total Current Assets | 27.59 Million |
| Other Current Assets | 224,060 |
| Non Current Assets Total | 15.37 Million |
| Net Tangible Assets | 16.59 Million |
| Non Currrent Assets Other | 0.0 |
| Other Assets | 2.79 Million |
| Deferred Long Term Asset Charges | 0.0 |
| Intangible Assets | 2.71 Million |
In the world of investing, fortune often favors the bold.
As November unfolds, Golden Matrix Group (NASDAQ: GMGI) presents intriguing opportunities for investors, particularly given its position in the Electronic Gaming & Multimedia industry. With a market capitalization of $285.91 million and a beta of 1.95, the stock exhibits a higher volatility compared to the market, suggesting potential for significant price movements. Despite reporting losses with an operating income of 526.2K, the company maintains a strong cash position with $17.1 million, which could provide a cushion for future growth initiatives. Investors should weigh these factors carefully, as the company's high price-to-earnings ratio of 95.77X indicates that the market has high expectations for its future performance..
Are Golden Matrix technical ratios showing a throwback?
Golden Matrix Group's Sortino ratio has dropped to -0.01, which might concern investors. This negative figure suggests the stock's returns aren't adequately covering the downside risk, hinting at possible volatility or tough market conditions. Investors should consider whether this is a temporary issue or a sign of ongoing challenges. The company also shows above-average semi-deviation, indicating higher volatility. Understanding these trends can help investors decide when to buy or sell. In bear markets, increased volatility can affect Golden Matrix's stock price, causing stress as values drop. This often leads investors to adjust their portfolios, seeking other opportunities as prices decline.
Our Final Take On Golden Matrix
Although some other firms within the electronic gaming & multimedia industry are still a little expensive, even after the recent corrections, Golden Matrix may offer a potential longer-term growth to traders. The inconsistency in the assessment between current Golden valuation and our trade advice on Golden Matrix is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Golden Matrix.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile 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 Vlad Skutelnik do not own shares of Golden Matrix Group. Please refer to our
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