Localiza Rent a Car Balance Sheet Health
Financial Health criteria checks 1/6
Localiza Rent a Car has a total shareholder equity of R$25.6B and total debt of R$43.2B, which brings its debt-to-equity ratio to 168.5%. Its total assets and total liabilities are R$82.6B and R$56.9B respectively. Localiza Rent a Car's EBIT is R$5.9B making its interest coverage ratio 1.5. It has cash and short-term investments of R$11.5B.
Key information
168.5%
Debt to equity ratio
R$43.21b
Debt
| Interest coverage ratio | 1.5x |
| Cash | R$11.53b |
| Equity | R$25.65b |
| Total liabilities | R$56.95b |
| Total assets | R$82.59b |
Recent financial health updates
No updates
Recent updates
No updates
Financial Position Analysis
Short Term Liabilities: RENT3's short term assets (R$19.7B) exceed its short term liabilities (R$18.0B).
Long Term Liabilities: RENT3's short term assets (R$19.7B) do not cover its long term liabilities (R$39.0B).
Debt to Equity History and Analysis
Debt Level: RENT3's net debt to equity ratio (123.5%) is considered high.
Reducing Debt: RENT3's debt to equity ratio has increased from 146.6% to 168.5% over the past 5 years.
Debt Coverage: RENT3's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: RENT3's interest payments on its debt are not well covered by EBIT (1.5x coverage).