Reece Balance Sheet Health
Financial Health criteria checks 6/6
Reece has a total shareholder equity of A$3.9B and total debt of A$859.3M, which brings its debt-to-equity ratio to 22.1%. Its total assets and total liabilities are A$7.1B and A$3.2B respectively. Reece's EBIT is A$674.4M making its interest coverage ratio 7.3. It has cash and short-term investments of A$341.4M.
Key information
22.1%
Debt to equity ratio
AU$859.32m
Debt
| Interest coverage ratio | 7.3x |
| Cash | AU$341.38m |
| Equity | AU$3.88b |
| Total liabilities | AU$3.21b |
| Total assets | AU$7.09b |
Recent financial health updates
No updates
Recent updates
Financial Position Analysis
Short Term Liabilities: REH's short term assets (A$3.2B) exceed its short term liabilities (A$1.5B).
Long Term Liabilities: REH's short term assets (A$3.2B) exceed its long term liabilities (A$1.7B).
Debt to Equity History and Analysis
Debt Level: REH's net debt to equity ratio (13.3%) is considered satisfactory.
Reducing Debt: REH's debt to equity ratio has reduced from 82.2% to 22.1% over the past 5 years.
Debt Coverage: REH's debt is well covered by operating cash flow (87.4%).
Interest Coverage: REH's interest payments on its debt are well covered by EBIT (7.3x coverage).