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Dangote Sugar Plc, the largest producer of the sweetener in Africa’s most populous nation, has a fortress-like balance sheet that makes the consumer goods giant impervious to macroeconomic headwinds.
The company’s near zero-debt makes its stocks worth having in the portfolio of rational investors who wish to magnify their earnings.
It is important to note that Dangote Sugar has greater credit worthiness, which places it in an advantageous position to get loans from banks to fund expansion plans.
Dangote Sugar has the lowest debt to equity ratio among firms on the NGX 30 lists that comprises the most liquid and capitalised firms. It has a debt to equity ratio of 0.67 percent while total debt (both long and short term) sits at N531,631.
This is impressive when compared to firms like Notore Chemicals with debt to equity ratio of 3,714 percent; Eterna Oil, 1.119 percent; LiveStock Feeds, percent; International Breweries Plc, 301.89 percent; Nigeria Breweries, 535.35 percent; 301.89 percent, according to data gathered by MoneyCentral.
The debt-to-equity (D/E) ratio compares a company’s total liabilities with its shareholder equity and can be used to assess the extent of its reliance on debt.
Dangote Sugar has the financial strength to pay off all of its debt and there is interest expense in its books, which means it is not servicing any debt.
The proposed merger of Dangote Sugar and Nascon Allied Industries Plc is going to produce a big manufacturing firm with a healthy balance sheet and enough ammunition in its arsenal to fund acquisitions and increase capital returns.
Dangote Sugar Plc, the largest producer of the sweetener in Africa’s most populous nation, has a fortress-like balance sheet that makes the consumer goods giant impervious to macroeconomic headwinds.
The company’s near zero-debt makes its stocks worth having in the portfolio of rational investors who wish to magnify their earnings.
It is important to note that Dangote Sugar has greater credit worthiness, which places it in an advantageous position to get loans from banks to fund expansion plans.
Dangote Sugar has the lowest debt to equity ratio among firms on the NGX 30 lists that comprises the most liquid and capitalised firms. It has a debt to equity ratio of 0.67 percent while total debt (both long and short term) sits at N531,631.
This is impressive when compared to firms like Notore Chemicals with debt to equity ratio of 3,714 percent; Eterna Oil, 1.119 percent; Livestock Feeds, percent; International Breweries Plc, 301.89 percent; Nigeria Breweries, 535.35 percent; 301.89 percent, according to data gathered by MoneyCentral.
The debt-to-equity (D/E) ratio compares a company’s total liabilities with its shareholder equity and can be used to assess the extent of its reliance on debt.
Dangote Sugar has the financial strength to pay off all of its debt and there is interest expense in its books, which means it is not servicing any debt.
The proposed merger of Dangote Sugar and Nascon Allied Industries Plc is going to produce a big manufacturing firm with a healthy balance sheet and enough ammunition in its arsenal to fund acquisitions and increase capital returns.
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