Health Check: How Prudently Does Beyond (NYSE:BYON) Use Debt?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously said that 'Volatility is far from synonymous with risk.' 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. As with many other companies Beyond, Inc. (NYSE:BYON) makes use of debt. But is this debt a concern to shareholders?

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What Risk Does Debt Bring?

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. If things get really bad, the lenders can take control of the business. However, a more common (but still painful) scenario is that it has to raise new equity capital at a low price, thus permanently diluting shareholders. By replacing dilution, though, debt can be an extremely good tool for businesses that need capital to invest in growth at high rates of return. When we think about a company's use of debt, we first look at cash and debt together.

What Is Beyond's Net Debt?

You can click the graphic below for the historical numbers, but it shows that Beyond had US$18.5m of debt in June 2025, down from US$34.2m, one year before. However, it does have US$120.6m in cash offsetting this, leading to net cash of US$102.1m.

A Look At Beyond's Liabilities

The latest balance sheet data shows that Beyond had liabilities of US$215.4m due within a year, and liabilities of US$11.4m falling due after that. Offsetting these obligations, it had cash of US$120.6m as well as receivables valued at US$23.3m due within 12 months. So it has liabilities totalling US$83.0m more than its cash and near-term receivables, combined.

Of course, Beyond has a market capitalization of US$468.4m, so these liabilities are probably manageable. Having said that, it's clear that we should continue to monitor its balance sheet, lest it change for the worse. Despite its noteworthy liabilities, Beyond boasts net cash, so it's fair to say it does not have a heavy debt load! The balance sheet is clearly the area to focus on when you are analysing debt. But it is future earnings, more than anything, that will determine Beyond's ability to maintain a healthy balance sheet going forward. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.

Check out our latest analysis for Beyond

In the last year Beyond had a loss before interest and tax, and actually shrunk its revenue by 27%, to US$1.1b. That makes us nervous, to say the least.

So How Risky Is Beyond?

We have no doubt that loss making companies are, in general, riskier than profitable ones. And in the last year Beyond had an earnings before interest and tax (EBIT) loss, truth be told. And over the same period it saw negative free cash outflow of US$112m and booked a US$202m accounting loss. But at least it has US$102.1m on the balance sheet to spend on growth, near-term. Summing up, we're a little skeptical of this one, as it seems fairly risky in the absence of free cashflow. The balance sheet is clearly the area to focus on when you are analysing debt. However, not all investment risk resides within the balance sheet - far from it. We've identified 3 warning signs with Beyond , and understanding them should be part of your investment process.

When all is said and done, sometimes its easier to focus on companies that don't even need debt. Readers can access a list of growth stocks with zero net debt 100% free, right now.

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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.