Arco Vara Balance Sheet Health
Financial Health criteria checks 4/6
Arco Vara has a total shareholder equity of €21.0M and total debt of €9.9M, which brings its debt-to-equity ratio to 47.1%. Its total assets and total liabilities are €35.2M and €14.2M respectively. Arco Vara's EBIT is €3.9M making its interest coverage ratio 10. It has cash and short-term investments of €1.5M.
Key information
47.1%
Debt to equity ratio
€9.90m
Debt
Interest coverage ratio | 10x |
Cash | €1.47m |
Equity | €21.02m |
Total liabilities | €14.17m |
Total assets | €35.19m |
Financial Position Analysis
Short Term Liabilities: ARC1T's short term assets (€34.9M) exceed its short term liabilities (€7.5M).
Long Term Liabilities: ARC1T's short term assets (€34.9M) exceed its long term liabilities (€6.7M).
Debt to Equity History and Analysis
Debt Level: ARC1T's net debt to equity ratio (40.1%) is considered high.
Reducing Debt: ARC1T's debt to equity ratio has reduced from 127.2% to 47.1% over the past 5 years.
Debt Coverage: ARC1T's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: ARC1T's interest payments on its debt are well covered by EBIT (10x coverage).