Hengong Precision Equipment Balance Sheet Health
Financial Health criteria checks 4/6
Hengong Precision Equipment has a total shareholder equity of CN¥1.6B and total debt of CN¥1.1B, which brings its debt-to-equity ratio to 70.5%. Its total assets and total liabilities are CN¥3.0B and CN¥1.4B respectively. Hengong Precision Equipment's EBIT is CN¥125.4M making its interest coverage ratio -14.2. It has cash and short-term investments of CN¥920.1M.
Key information
70.5%
Debt to equity ratio
CN¥1.10b
Debt
| Interest coverage ratio | -14.2x |
| Cash | CN¥920.10m |
| Equity | CN¥1.56b |
| Total liabilities | CN¥1.39b |
| Total assets | CN¥2.95b |
Financial Position Analysis
Short Term Liabilities: 301261's short term assets (CN¥1.6B) exceed its short term liabilities (CN¥1.2B).
Long Term Liabilities: 301261's short term assets (CN¥1.6B) exceed its long term liabilities (CN¥199.3M).
Debt to Equity History and Analysis
Debt Level: 301261's net debt to equity ratio (11.6%) is considered satisfactory.
Reducing Debt: 301261's debt to equity ratio has increased from 30.5% to 70.5% over the past 5 years.
Debt Coverage: 301261's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: 301261 earns more interest than it pays, so coverage of interest payments is not a concern.