These 4 Measures Indicate That Life (TSE:8194) Is Using Debt Reasonably Well
Life Corporation (TSE:8194) has reduced its debt from JP¥49.2b to JP¥36.3b over the past year, with a net debt of JP¥10.5b after accounting for JP¥25.8b in cash. Despite liabilities of JP¥141.3b due within a year, its market capitalization of JP¥212.7b suggests it can raise capital if needed. Life's net debt is only 0.25 times its EBITDA, and its EBIT covers interest expenses 290 times over, indicating a conservative debt management. However, concerns remain regarding total liabilities, highlighting the importance of future earnings in maintaining a healthy balance sheet.
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