SIMPLY WALL ST - Mar 30 - The $164M market-cap company posted a loss in its most recent financial year of €15M and a latest trailing-twelve-month loss of €11M shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which Spark Networks will turn a profit. Expectations from analysts is that Spark Networks is on the verge of breakeven. They anticipate the company to incur a final loss in 2020, before generating positive profits of €8.2M in 2021. One thing we would like to bring into light with Spark Networks is its relatively high level of debt. Typically, debt shouldn't exceed 40% of your equity, which in Spark Networks' case is 60%. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.
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