Merit Group Balance Sheet Health
Financial Health criteria checks 4/6
Merit Group has a total shareholder equity of £32.1M and total debt of £3.5M, which brings its debt-to-equity ratio to 11%. Its total assets and total liabilities are £44.3M and £12.2M respectively.
Key information
11.0%
Debt to equity ratio
UK£3.53m
Debt
| Interest coverage ratio | n/a |
| Cash | UK£1.07m |
| Equity | UK£32.11m |
| Total liabilities | UK£12.19m |
| Total assets | UK£44.29m |
Financial Position Analysis
Short Term Liabilities: MRIT's short term assets (£6.6M) do not cover its short term liabilities (£9.7M).
Long Term Liabilities: MRIT's short term assets (£6.6M) exceed its long term liabilities (£2.5M).
Debt to Equity History and Analysis
Debt Level: MRIT's net debt to equity ratio (7.7%) is considered satisfactory.
Reducing Debt: MRIT's debt to equity ratio has increased from 0% to 11% 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 MRIT has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: MRIT is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 13.3% per year.