iQSTEL provided PubCo Insight with an opportunity to review their shareholder management letter. Here’s our summary:
iQSTEL, a multi-faceted company operating in telecommunications, fintech, electric vehicles, and the metaverse, has demonstrated solid growth and development in its 2022 financial report. However, it faced some challenges due to losses attributed to derivative liabilities.
Here are the key takeaways from their financial report that stock traders should be aware of:
- iQSTEL’s balance sheet reflects consistent growth in total assets, indicating financial strength and expansion.
- The company’s current ratio and acid-test ratio are on par with industry standards, suggesting adequate liquidity and solvency.
- iQSTEL’s debt ratio is within the acceptable range for the telecommunications sector, demonstrating reasonable leverage management.
- The firm has experienced significant revenue growth in recent years, with a 44% increase in each of the last two years, signaling a positive trend in market demand for their services.
- Gross profit saw a 16.81% increase in 2022 compared to 2021, showcasing enhanced profitability.
- iQSTEL managed to reduce operating expenses as a percentage of revenue, reflecting improved operational efficiency.
- The losses in the financial report are primarily due to changes in the fair value of derivative liabilities, which are non-cash components. By analyzing the adjusted EBITDA, which excludes the impact of these non-cash losses, it’s evident that the company’s operations are improving over time.
- iQSTEL has pursued an aggressive M&A strategy, acquiring multiple companies to expand its business and create shareholder value. This approach has generated a positive net effect on the company’s assets.
Despite the challenges faced, iQSTEL is on an upward trajectory with plans for further growth and improvement in the future.
In conclusion, iQSTEL presents a compelling investment opportunity for stock traders as it demonstrates consistent growth, improving operational performance, and an ambitious expansion plan. While the company is currently facing some challenges due to derivative liabilities, its overall financial results signal a positive evolution, making it an attractive prospect for investors seeking long-term growth.
