Redco Textiles Balance Sheet Health
Financial Health criteria checks 3/6
Redco Textiles has a total shareholder equity of PKR1.0B and total debt of PKR2.5B, which brings its debt-to-equity ratio to 245.7%. Its total assets and total liabilities are PKR3.8B and PKR2.8B respectively. Redco Textiles's EBIT is PKR32.1M making its interest coverage ratio -3.3. It has cash and short-term investments of PKR136.8M.
Key information
245.7%
Debt to equity ratio
PK₨2.46b
Debt
| Interest coverage ratio | -3.3x |
| Cash | PK₨136.82m |
| Equity | PK₨1.00b |
| Total liabilities | PK₨2.80b |
| Total assets | PK₨3.80b |
Recent financial health updates
No updates
Recent updates
Financial Position Analysis
Short Term Liabilities: REDCO's short term assets (PKR1.2B) do not cover its short term liabilities (PKR2.7B).
Long Term Liabilities: REDCO's short term assets (PKR1.2B) exceed its long term liabilities (PKR109.9M).
Debt to Equity History and Analysis
Debt Level: REDCO's net debt to equity ratio (232%) is considered high.
Reducing Debt: REDCO had negative shareholder equity 5 years ago, but is now positive and has therefore improved.
Debt Coverage: REDCO's debt is not well covered by operating cash flow (17.8%).
Interest Coverage: REDCO earns more interest than it pays, so coverage of interest payments is not a concern.