Royal Exchange Balance Sheet Health
Financial Health criteria checks 3/6
Royal Exchange has a total shareholder equity of NGN2.6B and total debt of NGN2.0B, which brings its debt-to-equity ratio to 78.9%. Its total assets and total liabilities are NGN7.6B and NGN5.1B respectively. Royal Exchange's EBIT is NGN682.3M making its interest coverage ratio 3.6. It has cash and short-term investments of NGN627.0M.
Key information
78.9%
Debt to equity ratio
₦2.03b
Debt
| Interest coverage ratio | 3.6x |
| Cash | ₦626.97m |
| Equity | ₦2.57b |
| Total liabilities | ₦5.07b |
| Total assets | ₦7.64b |
Recent financial health updates
Recent updates
Financial Position Analysis
Short Term Liabilities: ROYALEX's short term assets (NGN1.9B) exceed its short term liabilities (NGN906.9M).
Long Term Liabilities: ROYALEX's short term assets (NGN1.9B) do not cover its long term liabilities (NGN4.2B).
Debt to Equity History and Analysis
Debt Level: ROYALEX's net debt to equity ratio (54.5%) is considered high.
Reducing Debt: ROYALEX's debt to equity ratio has reduced from 172.2% to 78.9% over the past 5 years.
Debt Coverage: ROYALEX's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: ROYALEX's interest payments on its debt are well covered by EBIT (3.6x coverage).