Are J Sainsbury (SBRY.L) Shares a Risky Investment Amid Companie’s Debt ?

Today, J Sainsbury’s shares are trading at a price of 279.50 GBP. Indicators of growth in share prices have been steadily growing throughout the year. By the end of last year, the share price was equal to 226. In January, the share price was 224.40 GBP. From March to May, the shares were worth 264 GBP. In June, the shares rose to 272 GBP. According to the latest balance sheet, J Sainsbury had liabilities of 11.6 billion pounds with a maturity of 12 months and liabilities of 7.68 billion pounds with a maturity of more than 12 months. Taking this into account, he had 845.0 million pounds in cash and 748.0 million pounds of receivables due within 12 months. Thus, its liabilities exceed the amount of cash and (short-term) receivables by 17.7 billion pounds.

The deficit here has a heavy impact on the British company itself at 5.08 billion pounds. Therefore, we are, without a doubt, closely monitoring its balance. After all, J Sainsbury will probably need a major recapitalization if its creditors demand a payout. We are somewhat concerned about the level of complexity of the general obligations of J. Sainsbury’s, but we also have positive moments that we should focus on. Thus, the conversion of EBIT to free cash flow and net debt to EBITDA was an encouraging sign.

Paul Meyer

Part-Time Reporter. Paul could do better in his engineering profession where he became a real pro. However, he chose the finance field to find a tranquil environment in his career. Today he creates a good number of great content for our team.

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