Hokko Chemical Industry Balance Sheet Health
Financial Health criteria checks 6/6
Hokko Chemical Industry has a total shareholder equity of ¥54.9B and total debt of ¥5.9B, which brings its debt-to-equity ratio to 10.7%. Its total assets and total liabilities are ¥83.2B and ¥28.3B respectively. Hokko Chemical Industry's EBIT is ¥4.1B making its interest coverage ratio -12.8. It has cash and short-term investments of ¥2.4B.
Key information
10.7%
Debt to equity ratio
JP¥5.90b
Debt
| Interest coverage ratio | -12.8x |
| Cash | JP¥2.42b |
| Equity | JP¥54.91b |
| Total liabilities | JP¥28.30b |
| Total assets | JP¥83.21b |
Financial Position Analysis
Short Term Liabilities: 4992's short term assets (¥45.4B) exceed its short term liabilities (¥17.8B).
Long Term Liabilities: 4992's short term assets (¥45.4B) exceed its long term liabilities (¥10.5B).
Debt to Equity History and Analysis
Debt Level: 4992's net debt to equity ratio (6.3%) is considered satisfactory.
Reducing Debt: 4992's debt to equity ratio has reduced from 39.5% to 10.7% over the past 5 years.
Debt Coverage: 4992's debt is well covered by operating cash flow (36.5%).
Interest Coverage: 4992 earns more interest than it pays, so coverage of interest payments is not a concern.