Pearson Balance Sheet Health
Financial Health criteria checks 5/6
Pearson has a total shareholder equity of £3.8B and total debt of £1.1B, which brings its debt-to-equity ratio to 29.9%. Its total assets and total liabilities are £6.7B and £2.9B respectively. Pearson's EBIT is £527.0M making its interest coverage ratio 10.8. It has cash and short-term investments of £332.0M.
Key information
29.9%
Debt to equity ratio
UK£1.14b
Debt
| Interest coverage ratio | 10.8x |
| Cash | UK£332.00m |
| Equity | UK£3.81b |
| Total liabilities | UK£2.90b |
| Total assets | UK£6.71b |
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 (£2.5B) exceed its short term liabilities (£1.4B).
Long Term Liabilities: PSO's short term assets (£2.5B) exceed its long term liabilities (£1.5B).
Debt to Equity History and Analysis
Debt Level: PSO's net debt to equity ratio (21.2%) is considered satisfactory.
Reducing Debt: PSO's debt to equity ratio has increased from 28.1% to 29.9% over the past 5 years.
Debt Coverage: PSO's debt is well covered by operating cash flow (51.5%).
Interest Coverage: PSO's interest payments on its debt are well covered by EBIT (10.8x coverage).
Balance Sheet
Discover healthy companies
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2025/02/03 03:40 |
| End of Day Share Price | 2025/01/31 00:00 |
| Earnings | 2024/06/30 |
| Annual Earnings | 2023/12/31 |
Data Sources
The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
| |
| Analyst Consensus Estimates | +3 years |
|
|
| Market Prices | 30 years |
| |
| Ownership | 10 years |
| |
| Management | 10 years |
| |
| Key Developments | 10 years |
|
* example for US securities, for non-US equivalent regulatory forms and sources are used.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.
Analysis Model and Snowflake
Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.
Learn about the world class team who designed and built the Simply Wall St analysis model.
Industry and Sector Metrics
Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .
Analyst Sources
Pearson plc is covered by 38 analysts. 9 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.
| Analyst | Institution |
|---|---|
| Véronique Cabioc'h Le Brun | AlphaValue |
| Nicholas Michael Dempsey | Barclays |
| JULIEN ROCH | Barclays |