We Think Thirdeye Systems (TLV:THES) Has A Fair Chunk Of Debt

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it seems the smart money knows that debt - which is usually involved in bankruptcies - is a very important factor, when you assess how risky a company is. We note that Thirdeye Systems Ltd (TLV:THES) does have debt on its balance sheet. But is this debt a concern to shareholders?

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

When Is Debt A Problem?

Generally speaking, debt only becomes a real problem when a company can't easily pay it off, either by raising capital or with its own cash flow. In the worst case scenario, a company can go bankrupt if it cannot pay its creditors. However, a more usual (but still expensive) situation is where a company must dilute shareholders at a cheap share price simply to get debt under control. Having said that, the most common situation is where a company manages its debt reasonably well - and to its own advantage. When we examine debt levels, we first consider both cash and debt levels, together.

How Much Debt Does Thirdeye Systems Carry?

You can click the graphic below for the historical numbers, but it shows that Thirdeye Systems had ₪5.81m of debt in June 2025, down from ₪7.06m, one year before. However, it does have ₪938.0k in cash offsetting this, leading to net debt of about ₪4.87m.

A Look At Thirdeye Systems' Liabilities

The latest balance sheet data shows that Thirdeye Systems had liabilities of ₪17.0m due within a year, and liabilities of ₪1.66m falling due after that. On the other hand, it had cash of ₪938.0k and ₪18.8m worth of receivables due within a year. So it can boast ₪1.04m more liquid assets than total liabilities.

This state of affairs indicates that Thirdeye Systems' balance sheet looks quite solid, as its total liabilities are just about equal to its liquid assets. So while it's hard to imagine that the ₪104.3m company is struggling for cash, we still think it's worth monitoring its balance sheet. There's no doubt that we learn most about debt from the balance sheet. But you can't view debt in total isolation; since Thirdeye Systems will need earnings to service that debt. So when considering debt, it's definitely worth looking at the earnings trend. Click here for an interactive snapshot.

Check out our latest analysis for Thirdeye Systems

In the last year Thirdeye Systems had a loss before interest and tax, and actually shrunk its revenue by 2.6%, to ₪18m. We would much prefer see growth.

Caveat Emptor

Over the last twelve months Thirdeye Systems produced an earnings before interest and tax (EBIT) loss. Indeed, it lost ₪9.1m at the EBIT level. On a more positive note, the company does have liquid assets, so it has a bit of time to improve its operations before the debt becomes an acute problem. Still, we'd be more encouraged to study the business in depth if it already had some free cash flow. This one is a bit too risky for our liking. There's no doubt that we learn most about debt from the balance sheet. However, not all investment risk resides within the balance sheet - far from it. Case in point: We've spotted 3 warning signs for Thirdeye Systems you should be aware of, and 2 of them make us uncomfortable.

If, after all that, you're more interested in a fast growing company with a rock-solid balance sheet, then check out our list of net cash growth stocks without delay.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.