Hengong Precision Equipment Balance Sheet Health
Financial Health criteria checks 4/6
Hengong Precision Equipment has a total shareholder equity of CN¥1.5B and total debt of CN¥1.1B, which brings its debt-to-equity ratio to 75.1%. Its total assets and total liabilities are CN¥2.9B and CN¥1.4B respectively. Hengong Precision Equipment's EBIT is CN¥140.2M making its interest coverage ratio -11.4. It has cash and short-term investments of CN¥1.0B.
Key information
75.1%
Debt to equity ratio
CN¥1.14b
Debt
Interest coverage ratio | -11.4x |
Cash | CN¥1.03b |
Equity | CN¥1.52b |
Total liabilities | CN¥1.41b |
Total assets | CN¥2.92b |
Financial Position Analysis
Short Term Liabilities: 301261's short term assets (CN¥1.8B) exceed its short term liabilities (CN¥1.2B).
Long Term Liabilities: 301261's short term assets (CN¥1.8B) exceed its long term liabilities (CN¥216.2M).
Debt to Equity History and Analysis
Debt Level: 301261's net debt to equity ratio (7.2%) is considered satisfactory.
Reducing Debt: 301261's debt to equity ratio has increased from 37.8% to 75.1% over the past 5 years.
Debt Coverage: 301261's debt is not well covered by operating cash flow (0.4%).
Interest Coverage: 301261 earns more interest than it pays, so coverage of interest payments is not a concern.