Hokuetsu Balance Sheet Health
Financial Health criteria checks 5/6
Hokuetsu has a total shareholder equity of ¥243.7B and total debt of ¥112.5B, which brings its debt-to-equity ratio to 46.2%. Its total assets and total liabilities are ¥419.9B and ¥176.2B respectively. Hokuetsu's EBIT is ¥18.6B making its interest coverage ratio -16.2. It has cash and short-term investments of ¥33.2B.
Key information
46.2%
Debt to equity ratio
JP¥112.47b
Debt
| Interest coverage ratio | -16.2x |
| Cash | JP¥33.17b |
| Equity | JP¥243.68b |
| Total liabilities | JP¥176.18b |
| Total assets | JP¥419.86b |
Financial Position Analysis
Short Term Liabilities: 3865's short term assets (¥190.4B) exceed its short term liabilities (¥87.9B).
Long Term Liabilities: 3865's short term assets (¥190.4B) exceed its long term liabilities (¥88.2B).
Debt to Equity History and Analysis
Debt Level: 3865's net debt to equity ratio (32.5%) is considered satisfactory.
Reducing Debt: 3865's debt to equity ratio has reduced from 62.2% to 46.2% over the past 5 years.
Debt Coverage: 3865's debt is not well covered by operating cash flow (13.9%).
Interest Coverage: 3865 earns more interest than it pays, so coverage of interest payments is not a concern.