a2 Milk Balance Sheet Health
Financial Health criteria checks 5/6
a2 Milk has a total shareholder equity of NZ$1.3B and total debt of NZ$37.9M, which brings its debt-to-equity ratio to 3%. Its total assets and total liabilities are NZ$1.7B and NZ$478.1M respectively. a2 Milk's EBIT is NZ$202.2M making its interest coverage ratio -5.6. It has cash and short-term investments of NZ$968.9M.
Key information
3.0%
Debt to equity ratio
NZ$37.89m
Debt
| Interest coverage ratio | -5.6x |
| Cash | NZ$968.94m |
| Equity | NZ$1.26b |
| Total liabilities | NZ$478.10m |
| Total assets | NZ$1.73b |
Recent financial health updates
No updates
Recent updates
Financial Position Analysis
Short Term Liabilities: A2M's short term assets (NZ$1.3B) exceed its short term liabilities (NZ$416.8M).
Long Term Liabilities: A2M's short term assets (NZ$1.3B) exceed its long term liabilities (NZ$61.3M).
Debt to Equity History and Analysis
Debt Level: A2M has more cash than its total debt.
Reducing Debt: A2M's debt to equity ratio has increased from 0% to 3% over the past 5 years.
Debt Coverage: A2M's debt is well covered by operating cash flow (675%).
Interest Coverage: A2M earns more interest than it pays, so coverage of interest payments is not a concern.