What does Yandex NV.’s (NASDAQ:YNDX) Balance Sheet Tell Us About Its Future?
Investors seeking to preserve capital in a volatile environment might consider large-cap stocks such as Yandex NV. (NASDAQ:YNDX) a safer option. Market participants who are conscious of risk tend to search for large firms, attracted by the prospect of varied revenue sources and strong returns on capital. However, its financial health remains the key to continued success. This article will examine Yandex’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. Note that this information is centred entirely on financial health and is a high-level overview, so I encourage you to look further into YNDX here. View our latest analysis for Yandex
How much cash does YNDX generate through its operations?
YNDX has shrunken its total debt levels in the last twelve months, from RUРУБ27.37B to RUРУБ18.75B – this includes both the current and long-term debt. With this debt payback, the current cash and short-term investment levels stands at RUРУБ63.03B , ready to deploy into the business. Moreover, YNDX has produced RUРУБ25.45B in operating cash flow in the last twelve months, leading to an operating cash to total debt ratio of 135.73%, meaning that YNDX’s debt is appropriately covered by operating cash. This ratio can also be a sign of operational efficiency as an alternative to return on assets. In YNDX’s case, it is able to generate 1.36x cash from its debt capital.
Does YNDX’s liquid assets cover its short-term commitments?
At the current liabilities level of RUРУБ14.62B liabilities, it appears that the company has been able to meet these obligations given the level of current assets of RUРУБ74.97B, with a current ratio of 5.13x. However, anything above 3x is considered high and could mean that YNDX has too much idle capital in low-earning investments.
Does YNDX face the risk of succumbing to its debt-load?
With debt at 20.28% of equity, YNDX may be thought of as appropriately levered. YNDX is not taking on too much debt commitment, which can be restrictive and risky for equity-holders.
Next Steps:
YNDX has demonstrated its ability to generate sufficient levels of cash flow, while its debt hovers at an appropriate level. Furthermore, the company exhibits an ability to meet its near-term obligations, which isn’t a big surprise for a large-cap. I admit this is a fairly basic analysis for YNDX’s financial health. Other important fundamentals need to be considered alongside. I suggest you continue to research Yandex to get a better picture of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for YNDX’s future growth? Take a look at our free research report of analyst consensus for YNDX’s outlook.
2. Valuation: What is YNDX worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether YNDX is currently mispriced by the market.
3. 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.
