Zip Co Balance Sheet Health
Financial Health criteria checks 3/6
Zip Co has a total shareholder equity of A$398.5M and total debt of A$2.4B, which brings its debt-to-equity ratio to 603%. Its total assets and total liabilities are A$3.2B and A$2.8B respectively. Zip Co's EBIT is A$353.6M making its interest coverage ratio 1.6. It has cash and short-term investments of A$125.9M.
Key information
603.0%
Debt to equity ratio
AU$2.40b
Debt
| Interest coverage ratio | 1.6x |
| Cash | AU$125.86m |
| Equity | AU$398.53m |
| Total liabilities | AU$2.78b |
| Total assets | AU$3.18b |
Recent financial health updates
No updates
Recent updates
Financial Position Analysis
Short Term Liabilities: ZIP's short term assets (A$2.9B) exceed its short term liabilities (A$1.4B).
Long Term Liabilities: ZIP's short term assets (A$2.9B) exceed its long term liabilities (A$1.4B).
Debt to Equity History and Analysis
Debt Level: ZIP's net debt to equity ratio (571.4%) is considered high.
Reducing Debt: ZIP's debt to equity ratio has reduced from 769.9% to 603% over the past 5 years.
Debt Coverage: ZIP's debt is not well covered by operating cash flow (11.3%).
Interest Coverage: ZIP's interest payments on its debt are not well covered by EBIT (1.6x coverage).