Air Canada Balance Sheet Health
Financial Health criteria checks 3/6
Air Canada has a total shareholder equity of CA$796.0M and total debt of CA$11.3B, which brings its debt-to-equity ratio to 1422.7%. Its total assets and total liabilities are CA$30.2B and CA$29.4B respectively. Air Canada's EBIT is CA$2.3B making its interest coverage ratio 4.5. It has cash and short-term investments of CA$8.6B.
Key information
1,422.7%
Debt to equity ratio
CA$11.33b
Debt
| Interest coverage ratio | 4.5x |
| Cash | CA$8.55b |
| Equity | CA$796.00m |
| Total liabilities | CA$29.40b |
| Total assets | CA$30.20b |
Recent financial health updates
Is Air Canada (TSE:AC) A Risky Investment?
Dec 07
Health Check: How Prudently Does Air Canada (TSE:AC) Use Debt?
Mar 25Is Air Canada (TSE:AC) Using Debt In A Risky Way?
Nov 19Recent updates
Air Canada's (TSE:AC) Popularity With Investors Is Under Threat From Overpricing
Apr 17Air Canada (TSE:AC) Is Looking To Continue Growing Its Returns On Capital
Mar 21Air Canada's (TSE:AC) Price In Tune With Revenues
Jan 03Is Air Canada (TSE:AC) A Risky Investment?
Dec 07Air Canada (TSE:AC) Has More To Do To Multiply In Value Going Forward
Nov 08Estimating The Intrinsic Value Of Air Canada (TSE:AC)
Dec 21Health Check: How Prudently Does Air Canada (TSE:AC) Use Debt?
Mar 25Air Canada (TSE:AC) Shares Could Be 22% Below Their Intrinsic Value Estimate
Apr 30How Many Air Canada (TSE:AC) Shares Did Insiders Buy, In The Last Year?
Dec 17Is Air Canada (TSE:AC) Using Debt In A Risky Way?
Nov 19Financial Position Analysis
Short Term Liabilities: AC's short term assets (CA$10.3B) exceed its short term liabilities (CA$10.0B).
Long Term Liabilities: AC's short term assets (CA$10.3B) do not cover its long term liabilities (CA$19.4B).
Debt to Equity History and Analysis
Debt Level: AC's net debt to equity ratio (348.5%) is considered high.
Reducing Debt: AC's debt to equity ratio has increased from 197.3% to 1422.7% over the past 5 years.
Debt Coverage: AC's debt is well covered by operating cash flow (38.1%).
Interest Coverage: AC's interest payments on its debt are well covered by EBIT (4.5x coverage).