Pearson Balance Sheet Health
Financial Health criteria checks 6/6
Pearson has a total shareholder equity of £4.0B and total debt of £657.0M, which brings its debt-to-equity ratio to 16.5%. Its total assets and total liabilities are £6.7B and £2.7B respectively. Pearson's EBIT is £535.0M making its interest coverage ratio 13. It has cash and short-term investments of £312.0M.
Key information
16.5%
Debt to equity ratio
UK£657.00m
Debt
| Interest coverage ratio | 13x |
| Cash | UK£312.00m |
| Equity | UK£3.99b |
| Total liabilities | UK£2.74b |
| Total assets | UK£6.73b |
Recent financial health updates
No updates
Recent updates
Pearson: First Quarter Metrics Were Good
May 03Pearson: Consider 2023 Results Preview And 2024 Prospects
Feb 06Pearson: Eyes On Assessment And Qualifications Business And Share Repurchases
Nov 15Pearson: Capital Allocation Matters (Rating Upgrade)
Sep 04Pearson: AI In The Limelight
Jun 20Pearson: Expensive For What It Is
Jan 18Pearson to acquire workforce assessment provider PDRI
Dec 19Pearson reports Q3 and nine months update
Oct 24Pearson: Watch Pandemic Recovery And Digital Metrics
Aug 09Pearson raises margin target amid cost saving strategy driving top line
Aug 01Pearson: Not Unlocking Much Value On Its Own
Apr 07Pearson: Fair Value But Not Cheap Enough To Tempt Me
Jan 06Pearson Stock: Market's Focus Is On Portfolio Optimization And Pearson+
Oct 12Pearson: Virtual Learning Powers Likely Growth, But Only Modestly
Jul 29Pearson: Its Education Pivot Remains Unproven As A Value Creator
Feb 04Pearson: Digital Disruption Is A Double-Edged Sword
Nov 26Financial Position Analysis
Short Term Liabilities: PSO's short term assets (£2.4B) exceed its short term liabilities (£1.4B).
Long Term Liabilities: PSO's short term assets (£2.4B) exceed its long term liabilities (£1.3B).
Debt to Equity History and Analysis
Debt Level: PSO's net debt to equity ratio (8.7%) is considered satisfactory.
Reducing Debt: PSO's debt to equity ratio has reduced from 17.1% to 16.5% over the past 5 years.
Debt Coverage: PSO's debt is well covered by operating cash flow (79.9%).
Interest Coverage: PSO's interest payments on its debt are well covered by EBIT (13x coverage).