This company has been acquired
TransAlta Renewables Balance Sheet Health
Financial Health criteria checks 2/6
TransAlta Renewables has a total shareholder equity of CA$1.7B and total debt of CA$794.0M, which brings its debt-to-equity ratio to 46.7%. Its total assets and total liabilities are CA$3.1B and CA$1.4B respectively. TransAlta Renewables's EBIT is CA$89.0M making its interest coverage ratio 12.7. It has cash and short-term investments of CA$54.0M.
Key information
46.71%
Debt to equity ratio
CA$794.00m
Debt
| Interest coverage ratio | 12.7x |
| Cash | CA$54.00m |
| Equity | CA$1.70b |
| Total liabilities | CA$1.43b |
| Total assets | CA$3.13b |
Recent financial health updates
Here's Why TransAlta Renewables (TSE:RNW) Can Manage Its Debt Responsibly
The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...These 4 Measures Indicate That TransAlta Renewables (TSE:RNW) Is Using Debt Reasonably Well
Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...We Think TransAlta Renewables (TSE:RNW) Can Stay On Top Of Its Debt
Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...TransAlta Renewables (TSE:RNW) Has A Pretty Healthy Balance Sheet
Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...Recent updates
Financial Position Analysis
Short Term Liabilities: RNW's short term assets (CA$210.0M) do not cover its short term liabilities (CA$241.0M).
Long Term Liabilities: RNW's short term assets (CA$210.0M) do not cover its long term liabilities (CA$1.2B).
Debt to Equity History and Analysis
Debt Level: RNW's net debt to equity ratio (43.5%) is considered high.
Reducing Debt: RNW's debt to equity ratio has increased from 43.2% to 46.7% over the past 5 years.
Debt Coverage: RNW's debt is well covered by operating cash flow (29.5%).
Interest Coverage: RNW's interest payments on its debt are well covered by EBIT (12.7x coverage).
Balance Sheet
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Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2023/10/08 10:45 |
| End of Day Share Price | 2023/10/06 00:00 |
| Earnings | 2023/06/30 |
| Annual Earnings | 2022/12/31 |
Data Sources
The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
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| Analyst Consensus Estimates | +3 years |
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| Market Prices | 30 years |
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| Ownership | 10 years |
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| Management | 10 years |
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| Key Developments | 10 years |
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* Example for US securities, for non-US equivalent regulatory forms and sources are used.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.
Analysis Model and Snowflake
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Industry and Sector Metrics
Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.
Analyst Sources
TransAlta Renewables Inc. is covered by 14 analysts. 3 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.
| Analyst | Institution |
|---|---|
| Nathan Heywood | ATB Cormark |
| Dariusz Lozny | BofA Global Research |
| David Galison | Canaccord Genuity |