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Franchise Group Balance Sheet Health
Financial Health criteria checks 1/6
Franchise Group has a total shareholder equity of $225.4M and total debt of $1.9B, which brings its debt-to-equity ratio to 839.7%. Its total assets and total liabilities are $3.6B and $3.3B respectively. Franchise Group's EBIT is $154.7M making its interest coverage ratio 0.5. It has cash and short-term investments of $106.3M.
Key information
839.7%
Debt to equity ratio
US$1.89b
Debt
Interest coverage ratio | 0.5x |
Cash | US$106.26m |
Equity | US$225.43m |
Total liabilities | US$3.35b |
Total assets | US$3.57b |
Recent financial health updates
Recent updates
Financial Position Analysis
Short Term Liabilities: 3HC's short term assets ($1.3B) exceed its short term liabilities ($976.0M).
Long Term Liabilities: 3HC's short term assets ($1.3B) do not cover its long term liabilities ($2.4B).
Debt to Equity History and Analysis
Debt Level: 3HC's net debt to equity ratio (792.6%) is considered high.
Reducing Debt: 3HC's debt to equity ratio has increased from 29.5% to 839.7% over the past 5 years.
Debt Coverage: 3HC's debt is not well covered by operating cash flow (2.7%).
Interest Coverage: 3HC's interest payments on its debt are not well covered by EBIT (0.5x coverage).