Pearson Balance Sheet Health

Financial Health criteria checks 6/6

Pearson has a total shareholder equity of £4.0B and total debt of £657.0M, which brings its debt-to-equity ratio to 16.5%. Its total assets and total liabilities are £6.7B and £2.7B respectively. Pearson's EBIT is £535.0M making its interest coverage ratio 13. It has cash and short-term investments of £312.0M.

Key information

16.5%

Debt to equity ratio

UK£657.00m

Debt

Interest coverage ratio	13x
Cash	UK£312.00m
Equity	UK£3.99b
Total liabilities	UK£2.74b
Total assets	UK£6.73b

Recent financial health updates

Recent updates

Subdued Growth No Barrier To Pearson plc's (LON:PSON) Price

Apr 24

Are Investors Undervaluing Pearson plc (LON:PSON) By 37%?

Apr 08

Pearson's (LON:PSON) Upcoming Dividend Will Be Larger Than Last Year's

Mar 23

Pearson's (LON:PSON) Upcoming Dividend Will Be Larger Than Last Year's

Feb 27

Pearson (LON:PSON) Seems To Use Debt Quite Sensibly

Feb 27

Pearson (LON:PSON) Is Paying Out A Larger Dividend Than Last Year

Aug 05

Pearson (LON:PSON) Seems To Use Debt Quite Sensibly

Aug 01

An Intrinsic Calculation For Pearson plc (LON:PSON) Suggests It's 46% Undervalued

May 06

Here's Why Pearson (LON:PSON) Can Manage Its Debt Responsibly

Apr 05

Pearson (LON:PSON) Could Be A Buy For Its Upcoming Dividend

Mar 21

Trade Alert: Graeme Pitkethly At Pearson plc (LON:PSON), Has Just Spent UK£50k Buying 267% More Shares

Mar 10

The Pearson (LON:PSON) Share Price Is Up 48% And Shareholders Are Holding On

Mar 10

Financial Position Analysis

Short Term Liabilities: PSON's short term assets (£2.4B) exceed its short term liabilities (£1.4B).

Long Term Liabilities: PSON's short term assets (£2.4B) exceed its long term liabilities (£1.3B).

Debt to Equity History and Analysis

Debt Level: PSON's net debt to equity ratio (8.7%) is considered satisfactory.

Reducing Debt: PSON's debt to equity ratio has reduced from 17.1% to 16.5% over the past 5 years.

Debt Coverage: PSON's debt is well covered by operating cash flow (79.9%).

Interest Coverage: PSON's interest payments on its debt are well covered by EBIT (13x coverage).

Pearson Balance Sheet Health

Financial Health criteria checks 6/6

Key information

Recent financial health updates

Pearson (LON:PSON) Seems To Use Debt Quite Sensibly

Pearson (LON:PSON) Seems To Use Debt Quite Sensibly

Here's Why Pearson (LON:PSON) Can Manage Its Debt Responsibly

Recent updates

Subdued Growth No Barrier To Pearson plc's (LON:PSON) Price

Are Investors Undervaluing Pearson plc (LON:PSON) By 37%?

Pearson plc Announces Three New Connections Academy Full-Time, Online Public School Programs in Pennsylvania, California, and Missouri

Pearson plc, Annual General Meeting, Apr 26, 2024

Upcoming dividend of UK£0.16 per share

Pearson Appoints Vishaal Gupta as President of Workforce Skills

Final dividend increased to UK£0.16

Full year 2023 earnings: EPS exceeds analyst expectations while revenues lag behind

Pearson plc Announces Board & Committee Changes

Pearson Announces Plans to Expand Its Beta AI Study Tools into Additional Pearson+ eTextbooks

Pearson Opens Bookings for PTE Core

Pearson plc to Report Fiscal Year 2023 Results on Mar 01, 2024

Pearson plc Announces Board Changes

Pearson plc Upgrades Group Earnings Guidance for the Year 2023

Pearson Launches Global Scale of Languages in French, Italian and Spanish to Mark European Day of Languages

Pearson plc (LSE:PSON) commences an Equity Buyback Plan for 71,612,324 shares, representing 10% of its issued share capital, under the authorization approved on April 28, 2023.

Pearson plc (LSE:PSON) commences an Equity Buyback Plan for 71,612,324 shares, representing 10% of its issued share capital, under the authorization approved on April 28, 2023.

Pearson plc Appoints Omar Abbosh as Executive Director

Upcoming dividend of UK£0.07 per share at 2.6% yield

Pearson plc Reiterates Group Financial Guidance for the Year 2023

First half 2023 earnings released: EPS: UK£0.26 (vs UK£0.18 in 1H 2022)

Pearson plc Declares Interim Dividend, Payable on 18 September 2023

Pearson plc Announces Board and Committee Changes

Pearson Has Announces Appointment of Siddharth Parnerkar as the New International Sales Director to Lead the Workforce Skills Vocational Qualifications Business Across Europe (Outside Uk), India Hub, Menat, Greater China and Apac Regions

Pearson Appoints Vinay Kumar Swamy the Country Head for India

Insufficient new directors

Pearson plc to Report First Half, 2023 Results on Jul 31, 2023

Pearson plc Appoints Alison Dolan and Alex Hardiman as Independent Non-Executive Directors, with Effect from 1 June 2023

Pearson plc Announces Updates on the Generative Ai Enhancements in Products Across Its Portfolio

CFO & Executive Director exercised options and sold UK£497k worth of stock

Now 20% undervalued after recent price drop

Upcoming dividend of UK£0.15 per share at 2.6% yield

CEO & Director exercised options and sold UK£2.0m worth of stock

Full year 2022 earnings: EPS exceeds analyst expectations

Pearson plc to Report Fiscal Year 2022 Results on Mar 03, 2023

Pearson plc (LSE:PSON) entered into an agreement to acquire Personnel Decisions Research Institutes Inc. from SHL US Inc. for an enterprise value of $190 million.

Price target increased to UK£9.95

Pearson plc Declares Interim Dividend for the Year 2022, Payable on 20 September 2022

Price target increased to UK£8.94

Sanoma Oyj (HLSE:SAA1V) completed the acquisition of K12 learning content business for an enterprise value of €190 million from Pearson plc (LSE:PSON).

Novus Holdings Limited (JSE:NVS) agreed to acquire a 75% stake in Pearson Holdings Southern Africa (Pty) Ltd from Pearson plc (LSE:PSON) for £53 million.

Upcoming dividend of UK£0.066 per share

First half 2022 earnings released

Pearson plc Announces Committee Changes

Pearson plc to Report First Half, 2022 Results on Aug 01, 2022

TC Media, Inc. acquired Editions Du Renouveau Pedagogique Inc. from Pearson plc (LSE:PSON).

Sanoma Oyj (HLSE:SAA1V) agreed to acquire K12 learning content business from Pearson plc (LSE:PSON) for €190 million.

Pearson Appoints Sulaekha "Sue" Kolloru as Chief Strategy Officer

An unknown buyer acquired unknown stake in Pearson plc (LSE:PSON) from Lindsell Train Limited.

Pearson plc (LSE:PSON) announces an Equity Buyback for £350 million worth of its shares.

Pearson's (LON:PSON) Upcoming Dividend Will Be Larger Than Last Year's

Upcoming dividend of UK£0.14 per share

Investor sentiment improved over the past week

Consensus forecasts updated

CEO & Director exercised options and sold UK£1.3m worth of stock

Pearson's (LON:PSON) Upcoming Dividend Will Be Larger Than Last Year's

Pearson (LON:PSON) Seems To Use Debt Quite Sensibly

Full year 2021 earnings: EPS exceeds analyst expectations while revenues lag behind

Pearson plc Announces Committee Appointments

Pearson plc (LSE:PSON) acquired remaining 80% stake in Credly, Inc. from a group of shareholders for $160 million.

Pearson plc (LSE:PSON) acquired remaining 80% stake in Credly, Inc. from a group of shareholders for $160 million.

Consensus EPS estimates increase by 18%

Consensus forecasts updated

Price target decreased to UK£7.17

Investor sentiment deteriorated over the past week

Pearson plc acquired Faethm AI.

Upcoming dividend of UK£0.063 per share

Pearson (LON:PSON) Is Paying Out A Larger Dividend Than Last Year

Pearson (LON:PSON) Seems To Use Debt Quite Sensibly

First half 2021 earnings released: EPS UK£0.023 (vs UK£0.063 in 1H 2020)

Managing Director of Greater China & India Hub Joe Lam has left the company

Consensus forecasts updated