Pearson Balance Sheet Health
Financial Health criteria checks 6/6
Pearson has a total shareholder equity of £4.0B and total debt of £657.0M, which brings its debt-to-equity ratio to 16.5%. Its total assets and total liabilities are £6.7B and £2.7B respectively. Pearson's EBIT is £535.0M making its interest coverage ratio 13. It has cash and short-term investments of £312.0M.
Key information
16.5%
Debt to equity ratio
UK£657.00m
Debt
| Interest coverage ratio | 13x |
| Cash | UK£312.00m |
| Equity | UK£3.99b |
| Total liabilities | UK£2.74b |
| Total assets | UK£6.73b |
Recent financial health updates
No updates
Recent updates
Financial Position Analysis
Short Term Liabilities: PSON N's short term assets (£2.4B) exceed its short term liabilities (£1.4B).
Long Term Liabilities: PSON N's short term assets (£2.4B) exceed its long term liabilities (£1.3B).
Debt to Equity History and Analysis
Debt Level: PSON N's net debt to equity ratio (8.7%) is considered satisfactory.
Reducing Debt: PSON N's debt to equity ratio has reduced from 17.1% to 16.5% over the past 5 years.
Debt Coverage: PSON N's debt is well covered by operating cash flow (79.9%).
Interest Coverage: PSON N's interest payments on its debt are well covered by EBIT (13x coverage).