Prosperity Resources (ASX:PSP) Debt-to-Equity: -30.17 (As of Jun. 2016)

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What is Prosperity Resources Debt-to-Equity?

Prosperity Resources ASX:PSP Debt-to-Equity is -30.17 as of Jun. 2016. The stock has 4 warning signs investors should review.

Prosperity Resources's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2016 was A$0.91 Mil. Prosperity Resources's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2016 was A$0.00 Mil. Prosperity Resources's Total Stockholders Equity for the quarter that ended in Jun. 2016 was A$-0.03 Mil. Prosperity Resources's debt to equity for the quarter that ended in Jun. 2016 was -30.17.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

The historical rank and industry rank for Prosperity Resources's Debt-to-Equity or its related term are showing as below:

ASX:PSP' s Debt-to-Equity Range Over the Past 10 Years
Min: 0   Med: 0   Max: 0
Current: 0.11
ASX:PSP's Debt-to-Equity is not ranked
in the Metals & Mining industry.
Industry Median: 0.15 vs ASX:PSP: 0.11

Prosperity Resources  (ASX:PSP) Debt-to-Equity Explanation

In the calculation of Debt to Equity, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by Total Stockholders Equity. In some calculations, Total Liabilities is used to for calculation.

Be Aware

Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.

Prosperity Resources Debt-to-Equity Related Terms

Prosperity Resources Debt-to-Equity Historical Data

* Premium members only.

The historical data trend for Prosperity Resources's Debt-to-Equity can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Prosperity Resources Debt-to-Equity Chart

Prosperity Resources Annual Data
Trend Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16
Debt-to-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.06 0.11 -0.85 1.90 -30.17

Prosperity Resources Semi-Annual Data
Dec06 Jun07 Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16
Debt-to-Equity Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.85 2.00 1.90 3.56 -30.17

Prosperity Resources Debt-to-Equity Competitor Comparison

For the Gold subindustry, Prosperity Resources's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Prosperity Resources Debt-to-Equity vs Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Prosperity Resources's Debt-to-Equity distribution charts can be found below:

* The bar in red indicates where Prosperity Resources's Debt-to-Equity falls into.


Prosperity Resources Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

Prosperity Resources's Debt to Equity Ratio for the fiscal year that ended in Jun. 2016 is calculated as

Debt to Equity=Total Debt / Total Stockholders Equity
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Total Stockholders Equity
=(0.905 + 0) / -0.03
=-30.17

Prosperity Resources's Debt to Equity Ratio for the quarter that ended in Jun. 2016 is calculated as

Debt to Equity=Total Debt / Total Stockholders Equity
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Total Stockholders Equity
=(0.905 + 0) / -0.03
=-30.17

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Debt-to-Equity →
What does a Debt-to-Equity of -30.17 mean?
Prosperity Resources (ASX:PSP) has a Debt-to-Equity of -30.17 as of Jun. 2016. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Prosperity Resources and its competitors.
Is Prosperity Resources' Debt-to-Equity too high?
Prosperity Resources' current Debt-to-Equity is -30.17.
How does Prosperity Resources' Debt-to-Equity compare to competitors?
Prosperity Resources' Debt-to-Equity of -30.17 can be compared against companies in the Metals & Mining industry. The industry median Debt-to-Equity is 0.15. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-Equity for a Metals & Mining company?
The median Debt-to-Equity among Metals & Mining companies is 0.15, based on 1,222 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Prosperity Resources and its competitors. For the Metals & Mining industry, the median Debt-to-Equity is 0.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Prosperity Resources's current Debt-to-Equity is -30.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Prosperity Resources stock overvalued right now?
Prosperity Resources (ASX:PSP) has a current Debt-to-Equity of -30.17. The current Debt-to-Equity is -30.17. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Prosperity Resources (ASX:PSP), the current Debt-to-Equity is -30.17 as of Jun. 2016. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Prosperity Resources Business Description

Prosperity Resources Limited (PSP) is an exploration company for gold and iron ore in the Murchison greenstone belt of Western Australia and copper/gold in the Tennant Creek Goldfield of Northern Territory.