Hotel NewgrandLtd Balance Sheet Health
Financial Health criteria checks 5/6
Hotel NewgrandLtd has a total shareholder equity of ¥3.4B and total debt of ¥2.3B, which brings its debt-to-equity ratio to 68.8%. Its total assets and total liabilities are ¥7.7B and ¥4.3B respectively. Hotel NewgrandLtd's EBIT is ¥372.0M making its interest coverage ratio 13.3. It has cash and short-term investments of ¥1.8B.
Key information
68.8%
Debt to equity ratio
JP¥2.31b
Debt
Interest coverage ratio | 13.3x |
Cash | JP¥1.77b |
Equity | JP¥3.36b |
Total liabilities | JP¥4.34b |
Total assets | JP¥7.70b |
Financial Position Analysis
Short Term Liabilities: 9720's short term assets (¥2.3B) exceed its short term liabilities (¥1.9B).
Long Term Liabilities: 9720's short term assets (¥2.3B) do not cover its long term liabilities (¥2.4B).
Debt to Equity History and Analysis
Debt Level: 9720's net debt to equity ratio (16.3%) is considered satisfactory.
Reducing Debt: 9720's debt to equity ratio has reduced from 101.9% to 68.8% over the past 5 years.
Debt Coverage: 9720's debt is well covered by operating cash flow (26.3%).
Interest Coverage: 9720's interest payments on its debt are well covered by EBIT (13.3x coverage).