Diageo Balance Sheet Health
Financial Health criteria checks 2/6
Diageo has a total shareholder equity of $12.1B and total debt of $21.9B, which brings its debt-to-equity ratio to 181.3%. Its total assets and total liabilities are $45.5B and $33.4B respectively. Diageo's EBIT is $6.0B making its interest coverage ratio 6.5. It has cash and short-term investments of $1.4B.
Key information
181.3%
Debt to equity ratio
US$21.88b
Debt
| Interest coverage ratio | 6.5x |
| Cash | US$1.41b |
| Equity | US$12.07b |
| Total liabilities | US$33.40b |
| Total assets | US$45.47b |
Recent financial health updates
Recent updates
Financial Position Analysis
Short Term Liabilities: DEO's short term assets ($15.1B) exceed its short term liabilities ($9.9B).
Long Term Liabilities: DEO's short term assets ($15.1B) do not cover its long term liabilities ($23.5B).
Debt to Equity History and Analysis
Debt Level: DEO's net debt to equity ratio (169.6%) is considered high.
Reducing Debt: DEO's debt to equity ratio has increased from 123.7% to 181.3% over the past 5 years.
Debt Coverage: DEO's debt is not well covered by operating cash flow (18.8%).
Interest Coverage: DEO's interest payments on its debt are well covered by EBIT (6.5x coverage).