Kao Fong Machinery Balance Sheet Health
Financial Health criteria checks 3/6
Kao Fong Machinery has a total shareholder equity of NT$1.9B and total debt of NT$1.9B, which brings its debt-to-equity ratio to 101.8%. Its total assets and total liabilities are NT$4.5B and NT$2.6B respectively. Kao Fong Machinery's EBIT is NT$138.8M making its interest coverage ratio 4. It has cash and short-term investments of NT$875.0M.
Key information
101.8%
Debt to equity ratio
NT$1.90b
Debt
| Interest coverage ratio | 4x |
| Cash | NT$874.98m |
| Equity | NT$1.86b |
| Total liabilities | NT$2.60b |
| Total assets | NT$4.46b |
Financial Position Analysis
Short Term Liabilities: 4510's short term assets (NT$2.0B) exceed its short term liabilities (NT$1.5B).
Long Term Liabilities: 4510's short term assets (NT$2.0B) exceed its long term liabilities (NT$1.0B).
Debt to Equity History and Analysis
Debt Level: 4510's net debt to equity ratio (54.8%) is considered high.
Reducing Debt: 4510's debt to equity ratio has increased from 88.7% to 101.8% over the past 5 years.
Debt Coverage: 4510's debt is not well covered by operating cash flow (15.7%).
Interest Coverage: 4510's interest payments on its debt are well covered by EBIT (4x coverage).