Gemfields (LSE:GEMA) Debt-to-Equity: 0.24 (As of Dec. 2016) — 167% Above Median

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What is Gemfields Debt-to-Equity?

Gemfields LSE:GEMA Debt-to-Equity is 0.24 as of Dec. 2016, which is 167% above its 10-year median of 0.09. The stock has 4 warning signs investors should review.

Gemfields's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2016 was £43.40 Mil. Gemfields's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2016 was £3.29 Mil. Gemfields's Total Stockholders Equity for the quarter that ended in Dec. 2016 was £195.61 Mil. Gemfields's debt to equity for the quarter that ended in Dec. 2016 was 0.24.

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 Gemfields's Debt-to-Equity or its related term are showing as below:

LSE:GEMA' s Debt-to-Equity Range Over the Past 10 Years
Min: 0.02   Med: 0.09   Max: 0.29
Current: 0.24

During the past 13 years, the highest Debt-to-Equity Ratio of Gemfields was 0.29. The lowest was 0.02. And the median was 0.09.

LSE:GEMA's Debt-to-Equity is not ranked
in the Metals & Mining industry.
Industry Median: 0.14 vs LSE:GEMA: 0.24

Gemfields  (LSE:GEMA) 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.


Gemfields Debt-to-Equity Related Terms


Gemfields Debt-to-Equity Historical Data

* Premium members only.

The historical data trend for Gemfields'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.

Gemfields Debt-to-Equity Chart

Gemfields 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 0.02 0.05 0.07 0.18 0.20

Gemfields Semi-Annual Data
Jun07 Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16
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 0.12 0.18 0.22 0.20 0.24

Gemfields Debt-to-Equity Competitor Comparison

For the Other Precious Metals & Mining subindustry, Gemfields'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.


Gemfields Debt-to-Equity vs Metals & Mining Industry

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

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



Gemfields Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

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

Gemfields's Debt to Equity Ratio for the quarter that ended in Dec. 2016 is calculated as

* 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 0.24 mean?
Gemfields (LSE:GEMA) has a Debt-to-Equity of 0.24 as of Dec. 2016. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Gemfields and its competitors. This is 167% above median its historical median of 0.09. Over the past decade, Gemfields' Debt-to-Equity has ranged from 0.02 to 0.29.
Is Gemfields' Debt-to-Equity too high?
Gemfields' current Debt-to-Equity of 0.24 is 167% above median its 10-year median of 0.09. Over the past 10 years, this metric has ranged from a low of 0.02 to a high of 0.29. The Metals & Mining industry median Debt-to-Equity is 0.14. Gemfields' value of 0.24 is 71.4% above this industry median.
How does Gemfields' Debt-to-Equity compare to competitors?
Gemfields' Debt-to-Equity of 0.24 can be compared against companies in the Metals & Mining industry. The industry median Debt-to-Equity is 0.14. Gemfields' value of 0.24 is 71.4% above this benchmark. Historically, Gemfields' own Debt-to-Equity has ranged from 0.02 to 0.29 over the past decade. While the company's 10-year median is 0.09 vs. the industry median of 0.14, Gemfields has consistently been above the industry average. 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 0.14, based on 1,233 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. Gemfields's current Debt-to-Equity of 0.24 is 71.4% above the industry median. 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 Gemfields and its competitors. For the Metals & Mining industry, the median Debt-to-Equity is 0.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gemfields's current Debt-to-Equity is 0.24, which is 167% above median its own 10-year median of 0.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gemfields stock overvalued right now?
Gemfields (LSE:GEMA) has a current Debt-to-Equity of 0.24. The current Debt-to-Equity is 0.24, which is 167% above median its 10-year median of 0.09 and 71.4% above the Metals & Mining industry median of 0.14. 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 Gemfields (LSE:GEMA), the current Debt-to-Equity is 0.24 as of Dec. 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.

Gemfields Business Description

Address St Julian’s Avenue, Royal Chambers, PO Box 186, Saint Peter Port, GGY, W1S 2HR
Gemfields PLC is a supplier of colored gemstones specializing in emeralds and amethysts from Zambia and rubies from Mozambique. The company's assets include Kagem emerald mine, Montepuez ruby mine, Kariba amethyst mine, Faberge, and it also has emerald, sapphire and ruby exploration projects at Colombia, Ethiopia, Sri Lanka, and Madagascar. Its segments consist of Zambia, Mozambique, United Kingdom, Faberge, and others. The company earns the majority of the revenue from the sale of rough and cut and polished gemstones as well as wholesale and retail sales of the gemstones and jewelry in the Faberge business.