Would Concorde International Group (NASDAQ:CIGL) Be Better Off With Less Debt?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says 'The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.' When we think about how risky a company is, we always like to look at its use of debt, since debt overload can lead to ruin. We can see that Concorde International Group Ltd. (NASDAQ:CIGL) does use debt in its business. But is this debt a concern to shareholders?

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Why Does Debt Bring Risk?

Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. If things get really bad, the lenders can take control of the business. While that is not too common, we often do see indebted companies permanently diluting shareholders because lenders force them to raise capital at a distressed price. Of course, plenty of companies use debt to fund growth, without any negative consequences. When we examine debt levels, we first consider both cash and debt levels, together.

How Much Debt Does Concorde International Group Carry?

As you can see below, Concorde International Group had US$6.00m of debt at June 2025, down from US$6.41m a year prior. However, it also had US$2.36m in cash, and so its net debt is US$3.63m.

A Look At Concorde International Group's Liabilities

We can see from the most recent balance sheet that Concorde International Group had liabilities of US$6.84m falling due within a year, and liabilities of US$3.33m due beyond that. Offsetting these obligations, it had cash of US$2.36m as well as receivables valued at US$6.81m due within 12 months. So its liabilities outweigh the sum of its cash and (near-term) receivables by US$1.00m.

Having regard to Concorde International Group's size, it seems that its liquid assets are well balanced with its total liabilities. So it's very unlikely that the US$63.6m company is short on cash, but still worth keeping an eye on the balance sheet. When analysing debt levels, the balance sheet is the obvious place to start. But it is Concorde International Group's earnings that will influence how the balance sheet holds up in the future. So if you're keen to discover more about its earnings, it might be worth checking out this graph of its long term earnings trend.

See our latest analysis for Concorde International Group

Over 12 months, Concorde International Group reported revenue of US$11m, which is a gain of 6.3%, although it did not report any earnings before interest and tax. We usually like to see faster growth from unprofitable companies, but each to their own.

Caveat Emptor

Over the last twelve months Concorde International Group produced an earnings before interest and tax (EBIT) loss. To be specific the EBIT loss came in at US$3.4m. When we look at that and recall the liabilities on its balance sheet, relative to cash, it seems unwise to us for the company to have any debt. Quite frankly we think the balance sheet is far from match-fit, although it could be improved with time. However, it doesn't help that it burned through US$4.3m of cash over the last year. So in short it's a really risky stock. 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. We've identified 3 warning signs with Concorde International Group (at least 2 which shouldn't be ignored) , and understanding them should be part of your investment process.

If you're interested in investing in businesses that can grow profits without the burden of debt, then check out this free list of growing businesses that have net cash on the balance sheet.

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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.