Redco Textiles Balance Sheet Health
Financial Health criteria checks 4/6
Redco Textiles has a total shareholder equity of PKR1.1B and total debt of PKR2.5B, which brings its debt-to-equity ratio to 226%. Its total assets and total liabilities are PKR4.0B and PKR2.9B respectively. Redco Textiles's EBIT is PKR12.5M making its interest coverage ratio -1.3. It has cash and short-term investments of PKR377.5M.
Key information
226.0%
Debt to equity ratio
PK₨2.46b
Debt
| Interest coverage ratio | -1.3x |
| Cash | PK₨377.51m |
| Equity | PK₨1.09b |
| Total liabilities | PK₨2.87b |
| Total assets | PK₨3.96b |
Recent financial health updates
No updates
Recent updates
Financial Position Analysis
Short Term Liabilities: REDCO's short term assets (PKR1.4B) do not cover its short term liabilities (PKR2.8B).
Long Term Liabilities: REDCO's short term assets (PKR1.4B) exceed its long term liabilities (PKR84.8M).
Debt to Equity History and Analysis
Debt Level: REDCO's net debt to equity ratio (191.3%) 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 well covered by operating cash flow (23.8%).
Interest Coverage: REDCO earns more interest than it pays, so coverage of interest payments is not a concern.