Howa Machinery Balance Sheet Health
Financial Health criteria checks 4/6
Howa Machinery has a total shareholder equity of ¥17.3B and total debt of ¥6.1B, which brings its debt-to-equity ratio to 35.2%. Its total assets and total liabilities are ¥30.3B and ¥13.0B respectively. Howa Machinery's EBIT is ¥388.0M making its interest coverage ratio -2.9. It has cash and short-term investments of ¥3.9B.
Key information
35.2%
Debt to equity ratio
JP¥6.10b
Debt
Interest coverage ratio | -2.9x |
Cash | JP¥3.90b |
Equity | JP¥17.33b |
Total liabilities | JP¥12.96b |
Total assets | JP¥30.29b |
Financial Position Analysis
Short Term Liabilities: 6203's short term assets (¥21.0B) exceed its short term liabilities (¥6.7B).
Long Term Liabilities: 6203's short term assets (¥21.0B) exceed its long term liabilities (¥6.2B).
Debt to Equity History and Analysis
Debt Level: 6203's net debt to equity ratio (12.7%) is considered satisfactory.
Reducing Debt: 6203's debt to equity ratio has increased from 11.1% to 35.2% over the past 5 years.
Debt Coverage: 6203's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: 6203 earns more interest than it pays, so coverage of interest payments is not a concern.