Mehran Sugar Mills Balance Sheet Health
Financial Health criteria checks 2/6
Mehran Sugar Mills has a total shareholder equity of PKR3.9B and total debt of PKR5.6B, which brings its debt-to-equity ratio to 145.7%. Its total assets and total liabilities are PKR12.1B and PKR8.2B respectively. Mehran Sugar Mills's EBIT is PKR2.4B making its interest coverage ratio 2.4. It has cash and short-term investments of PKR1.3B.
Key information
145.7%
Debt to equity ratio
PK₨5.65b
Debt
| Interest coverage ratio | 2.4x |
| Cash | PK₨1.29b |
| Equity | PK₨3.88b |
| Total liabilities | PK₨8.21b |
| Total assets | PK₨12.09b |
Recent financial health updates
No updates
Recent updates
Financial Position Analysis
Short Term Liabilities: MRNS's short term assets (PKR8.1B) exceed its short term liabilities (PKR7.1B).
Long Term Liabilities: MRNS's short term assets (PKR8.1B) exceed its long term liabilities (PKR1.1B).
Debt to Equity History and Analysis
Debt Level: MRNS's net debt to equity ratio (112.4%) is considered high.
Reducing Debt: MRNS's debt to equity ratio has increased from 141.6% to 145.7% over the past 5 years.
Debt Coverage: MRNS's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: MRNS's interest payments on its debt are not well covered by EBIT (2.4x coverage).