Reliance Cotton Spinning Mills Balance Sheet Health
Financial Health criteria checks 3/6
Reliance Cotton Spinning Mills has a total shareholder equity of PKR9.7B and total debt of PKR4.9B, which brings its debt-to-equity ratio to 50.4%. Its total assets and total liabilities are PKR16.7B and PKR7.0B respectively. Reliance Cotton Spinning Mills's EBIT is PKR1.6B making its interest coverage ratio 2. It has cash and short-term investments of PKR211.7M.
Key information
50.4%
Debt to equity ratio
PK₨4.90b
Debt
Interest coverage ratio | 2x |
Cash | PK₨211.66m |
Equity | PK₨9.71b |
Total liabilities | PK₨6.99b |
Total assets | PK₨16.70b |
Recent financial health updates
No updates
Recent updates
Financial Position Analysis
Short Term Liabilities: RCML's short term assets (PKR9.8B) exceed its short term liabilities (PKR5.1B).
Long Term Liabilities: RCML's short term assets (PKR9.8B) exceed its long term liabilities (PKR1.9B).
Debt to Equity History and Analysis
Debt Level: RCML's net debt to equity ratio (48.3%) is considered high.
Reducing Debt: RCML's debt to equity ratio has reduced from 100.7% to 50.4% over the past 5 years.
Debt Coverage: RCML's debt is not well covered by operating cash flow (14.1%).
Interest Coverage: RCML's interest payments on its debt are not well covered by EBIT (2x coverage).