How Glencore Plans to Allocate Capital amid Strong Finances

Glencore’s (GLEN-L) financial position has improved greatly since 2015, when concerns over near-term debt maturities—coupled with falling commodity prices—triggered a massive sell-off in the stock. Now, not only has the company restored its dividend program, but it’s also looking at inorganic growth. Along with the 2017 annual results, Glencore said the company would like to keep its net debt between $10 billion and $16 billion and would cap its net debt to EBITDA (earnings before interest, tax, depreciation, and amortization) to 2x.