Redco Textiles Balance Sheet Health
Financial Health criteria checks 3/6
Redco Textiles has a total shareholder equity of PKR397.0M and total debt of PKR2.5B, which brings its debt-to-equity ratio to 622.9%. Its total assets and total liabilities are PKR3.1B and PKR2.7B respectively. Redco Textiles's EBIT is PKR170.2M making its interest coverage ratio 169.1. It has cash and short-term investments of PKR105.1M.
Key information
622.9%
Debt to equity ratio
PK₨2.47b
Debt
| Interest coverage ratio | 169.1x |
| Cash | PK₨105.11m |
| Equity | PK₨396.96m |
| Total liabilities | PK₨2.66b |
| Total assets | PK₨3.05b |
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 (PKR2.6B).
Long Term Liabilities: REDCO's short term assets (PKR1.4B) exceed its long term liabilities (PKR37.0M).
Debt to Equity History and Analysis
Debt Level: REDCO's net debt to equity ratio (596.4%) 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 operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: REDCO's interest payments on its debt are well covered by EBIT (169.1x coverage).