Yahoo Finance What Investors Should Know About Oxford Immunotec Global PLC’s (NASDAQ:OXFD) Financial Strength
Investors are always looking for growth in small-cap stocks like Oxford Immunotec Global PLC (NASDAQ:OXFD), with a market cap of US$358.97m. However, an important fact which most ignore is: how financially healthy is the business? Medical Equipment companies, in particular ones that run negative earnings, are inclined towards being higher risk. Assessing first and foremost the financial health is crucial. Here are a few basic checks that are good enough to have a broad overview of the company’s financial strength. Nevertheless, this commentary is still very high-level, so I suggest you dig deeper yourself into OXFD here.
How much cash does OXFD generate through its operations?
OXFD’s debt level has been constant at around US$30.00m over the previous year – this includes both the current and long-term debt. At this current level of debt, the current cash and short-term investment levels stands at US$90.33m , ready to deploy into the business. Moving onto cash from operations, its operating cash flow is not yet significant enough to calculate a meaningful cash-to-debt ratio, indicating that operational efficiency is something we’d need to take a look at. As the purpose of this article is a high-level overview, I won’t be looking at this today, but you can examine some of OXFD’s operating efficiency ratios such as ROA here.
Can OXFD meet its short-term obligations with the cash in hand?
At the current liabilities level of US$22.45m liabilities, it seems that the business has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 5.37x. However, anything about 3x may be excessive, since OXFD may be leaving too much capital in low-earning investments.
Does OXFD face the risk of succumbing to its debt-load?
With debt at 37.82% of equity, OXFD may be thought of as appropriately levered. This range is considered safe as OXFD is not taking on too much debt obligation, which can be restrictive and risky for equity-holders. Risk around debt is very low for OXFD, and the company also has the ability and headroom to increase debt if needed going forward.
Next Steps:
Although OXFD’s debt level is relatively low, its cash flow levels still could not copiously cover its borrowings. This may indicate room for improvement in terms of its operating efficiency. However, the company exhibits an ability to meet its near term obligations should an adverse event occur. I admit this is a fairly basic analysis for OXFD’s financial health. Other important fundamentals need to be considered alongside. I recommend you continue to research Oxford Immunotec Global to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for OXFD’s future growth? Take a look at our free research report of analyst consensus for OXFD’s outlook.
Historical Performance: What has OXFD’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
