Painreform Ltd. Ordinary Shares(Prfx) Financials: Debt To Equity Compared To Industry Average, Plus Other Key Ratios
Solvency Trend (Last 5 Years)
Solvency - debt to equity
This chart shows the historical trend of debt to equity for PRFX compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Debt to Equity
Definition: Debt to equity shows how much debt the company uses compared to the amount invested by its owners. It’s a bit like comparing your mortgage to your house down payment. Higher ratios suggest the business is comfortable borrowing to grow — which can boost returns in good times, but adds risk if conditions worsen. Lower ratios signal a more conservative, steady approach.
Interpretation:
• In '2023', PRFX's debt to equity was 0.01, showing the balance between debt financing and shareholders' equity. Industry average for Biotechnology: Pharmaceutical Preparations in '2023' stood at 0.16.
• In '2024', PRFX's debt to equity was 0.02, showing the balance between debt financing and shareholders' equity. The increase compared to '2023' may signal growing financial pressure. Industry average for Biotechnology: Pharmaceutical Preparations in '2024' stood at 0.26. Industry average increased by 0.10 compared to previous year.
Overall, PRFX's debt to equity has been volatile but generally stable over the past 2 years.
Formula: Debt to Equity = Total Debt / Shareholders' Equity
Good Range: Below 1.0 is conservative; 1-2 is common depending on industry.