Nexans SA

Nexans maintains a leveraged capital structure with a debt-to-equity ratio of 0.95, indicating significant reliance on debt financing relative to shareholder equity. The balance sheet shows total liabilities of €6.04 billion against total equity of €1.99 billion, resulting in a current ratio of 1.22, which suggests adequate but tight short-term liquidity coverage. The company holds €724 million in cash and equivalents, but this is offset by €1.9 billion in long-term debt, leading to a net cash position that is negative after subtracting total debt. Operating cash flow stands at €843 million, providing a buffer against debt obligations, though free cash flow is negative at -€30 million due to capital expenditures of €383 million.

Profitability metrics indicate efficient use of equity, with a return on equity (ROE) of 17.59%, which is generally considered strong for an industrial manufacturer. Return on assets (ROA) is 4.37%, reflecting the asset-intensive nature of the business. The gross profit of €907 million on revenue of €7.81 billion results in a gross margin of approximately 11.6%, while operating income of €375 million yields an operating margin of roughly 4.8%. Net income of €351 million represents a net margin of about 4.5%, demonstrating the company's ability to convert revenue into bottom-line earnings despite the high leverage and capital intensity.