Faran Sugar Mills Balance Sheet Health
Financial Health criteria checks 1/6
Faran Sugar Mills has a total shareholder equity of PKR3.1B and total debt of PKR5.4B, which brings its debt-to-equity ratio to 174.5%. Its total assets and total liabilities are PKR11.1B and PKR8.0B respectively. Faran Sugar Mills's EBIT is PKR1.4B making its interest coverage ratio 1.8. It has cash and short-term investments of PKR159.1M.
Key information
174.5%
Debt to equity ratio
PK₨5.35b
Debt
Interest coverage ratio | 1.8x |
Cash | PK₨159.12m |
Equity | PK₨3.07b |
Total liabilities | PK₨8.04b |
Total assets | PK₨11.11b |
Recent financial health updates
No updates
Recent updates
Financial Position Analysis
Short Term Liabilities: FRSM's short term assets (PKR6.2B) do not cover its short term liabilities (PKR7.0B).
Long Term Liabilities: FRSM's short term assets (PKR6.2B) exceed its long term liabilities (PKR1.0B).
Debt to Equity History and Analysis
Debt Level: FRSM's net debt to equity ratio (169.3%) is considered high.
Reducing Debt: FRSM's debt to equity ratio has increased from 75.4% to 174.5% over the past 5 years.
Debt Coverage: FRSM's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: FRSM's interest payments on its debt are not well covered by EBIT (1.8x coverage).