“Although the company has an EBITD of around 79%, allowing it to cover interest costs, it is distributing all its profits and reserves. The company should retain some earnings to fund future growth without relying on capex loans. If the company continues to distribute all its profits, it will need to take loans for capital expenditures, thereby increasing debt on the balance sheet and raising interest costs. Furthermore, if the company is distributing more than 100% of its profits, it indicates a lack of plans for the coming years.”
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