Reliance Cotton Spinning Mills Balance Sheet Health
Financial Health criteria checks 6/6
Reliance Cotton Spinning Mills has a total shareholder equity of PKR10.6B and total debt of PKR2.9B, which brings its debt-to-equity ratio to 27.4%. Its total assets and total liabilities are PKR16.5B and PKR5.9B respectively. Reliance Cotton Spinning Mills's EBIT is PKR2.1B making its interest coverage ratio 3.3. It has cash and short-term investments of PKR270.6M.
Key information
27.4%
Debt to equity ratio
PK₨2.92b
Debt
| Interest coverage ratio | 3.3x |
| Cash | PK₨270.63m |
| Equity | PK₨10.63b |
| Total liabilities | PK₨5.88b |
| Total assets | PK₨16.50b |
Recent financial health updates
No updates
Recent updates
Financial Position Analysis
Short Term Liabilities: RCML's short term assets (PKR9.5B) exceed its short term liabilities (PKR4.1B).
Long Term Liabilities: RCML's short term assets (PKR9.5B) exceed its long term liabilities (PKR1.7B).
Debt to Equity History and Analysis
Debt Level: RCML's net debt to equity ratio (24.9%) is considered satisfactory.
Reducing Debt: RCML's debt to equity ratio has reduced from 92.5% to 27.4% over the past 5 years.
Debt Coverage: RCML's debt is well covered by operating cash flow (103%).
Interest Coverage: RCML's interest payments on its debt are well covered by EBIT (3.3x coverage).