Echo Trading Balance Sheet Health
Financial Health criteria checks 6/6
Echo Trading has a total shareholder equity of ¥10.8B and total debt of ¥3.5B, which brings its debt-to-equity ratio to 32.5%. Its total assets and total liabilities are ¥36.0B and ¥25.2B respectively. Echo Trading's EBIT is ¥1.6B making its interest coverage ratio 226.6. It has cash and short-term investments of ¥4.0B.
Key information
32.5%
Debt to equity ratio
JP¥3.50b
Debt
Interest coverage ratio | 226.6x |
Cash | JP¥4.05b |
Equity | JP¥10.78b |
Total liabilities | JP¥25.20b |
Total assets | JP¥35.98b |
Financial Position Analysis
Short Term Liabilities: 7427's short term assets (¥33.6B) exceed its short term liabilities (¥24.9B).
Long Term Liabilities: 7427's short term assets (¥33.6B) exceed its long term liabilities (¥321.0M).
Debt to Equity History and Analysis
Debt Level: 7427 has more cash than its total debt.
Reducing Debt: 7427's debt to equity ratio has reduced from 77.1% to 32.5% over the past 5 years.
Debt Coverage: 7427's debt is well covered by operating cash flow (34.1%).
Interest Coverage: 7427's interest payments on its debt are well covered by EBIT (226.6x coverage).