Hollysys Automation Corp (HOLI) Long-Term Debt to Capital Ratio

The price evolution of Hollysys Automation (HOLI) demonstrates the impact of its dominance in the PRC automation sector and the supply of systems for nuclear power plants and transport, with the indicator standing at 0.04. Long-term government contracts and high production efficiency ensure a stable cash flow. The business relies on the creation of closed technological ecosystems, which make it virtually impossible for clients to migrate to alternative solutions.
Analytical breakdowns for Hollysys Automation (HOLI)

To assess the fundamental stability of Hollysys Automation (HOLI), it is essential to analyze the debt structure. The current conversion of the order backlog into revenue generates the cash flow necessary to service obligations. This ratio of long-term loans to equity measures the proportion of debt with maturities exceeding one year relative to shareholders' equity. A decrease in this coefficient enhances financial security, whereas an increase may amplify financial leverage. The stability of this metric confirms the reliability of the asset.