Air Canada Balance Sheet Health
Financial Health criteria checks 2/6
Air Canada has a total shareholder equity of CA$3.1B and total debt of CA$9.9B, which brings its debt-to-equity ratio to 321.4%. Its total assets and total liabilities are CA$31.5B and CA$28.4B respectively. Air Canada's EBIT is CA$1.6B making its interest coverage ratio 5. It has cash and short-term investments of CA$8.4B.
Key information
321.4%
Debt to equity ratio
CA$9.94b
Debt
| Interest coverage ratio | 5x |
| Cash | CA$8.38b |
| Equity | CA$3.09b |
| Total liabilities | CA$28.40b |
| Total assets | CA$31.50b |
Recent financial health updates
Does Air Canada (TSE:AC) Have A Healthy Balance Sheet?
Sep 04
Does Air Canada (TSE:AC) Have A Healthy Balance Sheet?
May 14Is Air Canada (TSE:AC) A Risky Investment?
Dec 07Health Check: How Prudently Does Air Canada (TSE:AC) Use Debt?
Mar 25Recent updates
Air Canada (TSE:AC) Held Back By Insufficient Growth Even After Shares Climb 32%
Nov 02Air Canada (TSE:AC) Is Experiencing Growth In Returns On Capital
Oct 22Does Air Canada (TSE:AC) Have A Healthy Balance Sheet?
Sep 04Pinning Down Air Canada's (TSE:AC) P/S Is Difficult Right Now
Aug 07The Return Trends At Air Canada (TSE:AC) Look Promising
Jul 11Does Air Canada (TSE:AC) Have A Healthy Balance Sheet?
May 14Air 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 30Financial Position Analysis
Short Term Liabilities: AC's short term assets (CA$10.3B) do not cover its short term liabilities (CA$11.1B).
Long Term Liabilities: AC's short term assets (CA$10.3B) do not cover its long term liabilities (CA$17.3B).
Debt to Equity History and Analysis
Debt Level: AC's net debt to equity ratio (50.4%) is considered high.
Reducing Debt: AC's debt to equity ratio has increased from 148.1% to 321.4% over the past 5 years.
Debt Coverage: AC's debt is well covered by operating cash flow (42.6%).
Interest Coverage: AC's interest payments on its debt are well covered by EBIT (5x coverage).