Howa Machinery Balance Sheet Health
Financial Health criteria checks 4/6
Howa Machinery has a total shareholder equity of ¥17.7B and total debt of ¥7.0B, which brings its debt-to-equity ratio to 39.8%. Its total assets and total liabilities are ¥33.0B and ¥15.3B respectively. Howa Machinery's EBIT is ¥860.0M making its interest coverage ratio -6.1. It has cash and short-term investments of ¥3.6B.
Key information
39.8%
Debt to equity ratio
JP¥7.04b
Debt
| Interest coverage ratio | -6.1x |
| Cash | JP¥3.60b |
| Equity | JP¥17.68b |
| Total liabilities | JP¥15.31b |
| Total assets | JP¥32.99b |
Recent financial health updates
Financial Position Analysis
Short Term Liabilities: 6203's short term assets (¥22.6B) exceed its short term liabilities (¥8.3B).
Long Term Liabilities: 6203's short term assets (¥22.6B) exceed its long term liabilities (¥7.0B).
Debt to Equity History and Analysis
Debt Level: 6203's net debt to equity ratio (19.4%) is considered satisfactory.
Reducing Debt: 6203's debt to equity ratio has increased from 12.7% to 39.8% over the past 5 years.
Debt Coverage: 6203's debt is not well covered by operating cash flow (9.1%).
Interest Coverage: 6203 earns more interest than it pays, so coverage of interest payments is not a concern.