BAE Systems Balance Sheet Health
Financial Health criteria checks 3/6
BAE Systems has a total shareholder equity of £11.5B and total debt of £9.0B, which brings its debt-to-equity ratio to 78.3%. Its total assets and total liabilities are £37.2B and £25.8B respectively. BAE Systems's EBIT is £2.4B making its interest coverage ratio 8.1. It has cash and short-term investments of £2.8B.
Key information
78.3%
Debt to equity ratio
UK£8.97b
Debt
| Interest coverage ratio | 8.1x |
| Cash | UK£2.83b |
| Equity | UK£11.46b |
| Total liabilities | UK£25.76b |
| Total assets | UK£37.22b |
Recent financial health updates
No updates
Recent updates
Financial Position Analysis
Short Term Liabilities: BAL's short term assets (£11.5B) exceed its short term liabilities (£11.2B).
Long Term Liabilities: BAL's short term assets (£11.5B) do not cover its long term liabilities (£14.6B).
Debt to Equity History and Analysis
Debt Level: BAL's net debt to equity ratio (53.6%) is considered high.
Reducing Debt: BAL's debt to equity ratio has increased from 63.8% to 78.3% over the past 5 years.
Debt Coverage: BAL's debt is well covered by operating cash flow (33.8%).
Interest Coverage: BAL's interest payments on its debt are well covered by EBIT (8.1x coverage).