Localiza Rent a Car Balance Sheet Health
Financial Health criteria checks 1/6
Localiza Rent a Car has a total shareholder equity of R$26.0B and total debt of R$42.2B, which brings its debt-to-equity ratio to 162.2%. Its total assets and total liabilities are R$79.9B and R$53.9B respectively. Localiza Rent a Car's EBIT is R$6.3B making its interest coverage ratio 1.6. It has cash and short-term investments of R$10.5B.
Key information
162.2%
Debt to equity ratio
R$42.17b
Debt
Interest coverage ratio | 1.6x |
Cash | R$10.48b |
Equity | R$26.01b |
Total liabilities | R$53.90b |
Total assets | R$79.91b |
Recent financial health updates
No updates
Recent updates
No updates
Financial Position Analysis
Short Term Liabilities: RENT3's short term assets (R$18.1B) exceed its short term liabilities (R$15.6B).
Long Term Liabilities: RENT3's short term assets (R$18.1B) do not cover its long term liabilities (R$38.3B).
Debt to Equity History and Analysis
Debt Level: RENT3's net debt to equity ratio (121.8%) is considered high.
Reducing Debt: RENT3's debt to equity ratio has increased from 150.8% to 162.2% 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 (1.6x coverage).