Merit Group Balance Sheet Health
Financial Health criteria checks 5/6
Merit Group has a total shareholder equity of £31.3M and total debt of £2.9M, which brings its debt-to-equity ratio to 9.1%. Its total assets and total liabilities are £41.2M and £9.9M respectively. Merit Group's EBIT is £1.0M making its interest coverage ratio 2.5. It has cash and short-term investments of £545.0K.
Key information
9.1%
Debt to equity ratio
UK£2.85m
Debt
| Interest coverage ratio | 2.5x |
| Cash | UK£545.00k |
| Equity | UK£31.28m |
| Total liabilities | UK£9.89m |
| Total assets | UK£41.17m |
Recent financial health updates
No updates
Recent updates
Financial Position Analysis
Short Term Liabilities: HXP0's short term assets (£4.3M) do not cover its short term liabilities (£8.5M).
Long Term Liabilities: HXP0's short term assets (£4.3M) exceed its long term liabilities (£1.4M).
Debt to Equity History and Analysis
Debt Level: HXP0's net debt to equity ratio (7.4%) is considered satisfactory.
Reducing Debt: HXP0's debt to equity ratio has reduced from 13.7% to 9.1% over the past 5 years.
Balance Sheet
Cash Runway Analysis
For companies that have on average been loss-making in the past, we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: Whilst unprofitable HXP0 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: HXP0 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 29.7% per year.