Twenty-two of 40 companies assessed on the Nigerian Exchange Limited had less cash than total debt in the second quarter of 2026, with combined borrowings across the firms standing at about N3.9 trillion.
The cash/debt figures show a wide gap in liquidity positions. Eighteen companies had cash equal to or greater than their debt, while 22 recorded ratios below one.
Caverton Offshore Support Group had the lowest ratio at 0.03 times, with N2.46 billion in cash against N87.15 billion in debt. Chellarams followed at 0.05 times, while C & I Leasing, FTN Cocoa Processors and Geregu Power also recorded ratios below 0.10.
Aradel Holdings was close to covering its debt, with N1.77 trillion in cash against N1.84 trillion in borrowings.
At the other end, HBM Nigeria recorded the highest cash/debt ratio at 319.07 times, followed by UPDC REIT at 283.73 times, eTranzact at 214.89 times and CWG at 211.1 times.
Several other firms, including Unilever Nigeria, Berger Paints, Industrial & Medical Gases and NASCON, also held cash well above their debt levels.
A ratio below one means available cash is lower than total borrowings, but it does not by itself establish financial distress. Companies may also rely on operating cash flows, credit facilities and repayment arrangements to meet their obligations.
Similarly, a strong cash/debt ratio does not necessarily indicate profitability. The measure provides a snapshot of liquidity and is best considered alongside earnings, cash generation, interest costs and debt maturities.
Source: Vanguard
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