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Vishvprabha Ventures (BOM:512064) Financial Strength : 3 (As of Dec. 2023)


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What is Vishvprabha Ventures Financial Strength?

Vishvprabha Ventures has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Vishvprabha Ventures Ltd displays poor financial strength. Usually, this is caused by too much debt for the company.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Vishvprabha Ventures did not have earnings to cover the interest expense. Vishvprabha Ventures's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.00. As of today, Vishvprabha Ventures's Altman Z-Score is 0.73.


Competitive Comparison of Vishvprabha Ventures's Financial Strength

For the Engineering & Construction subindustry, Vishvprabha Ventures's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Vishvprabha Ventures's Financial Strength Distribution in the Construction Industry

For the Construction industry and Industrials sector, Vishvprabha Ventures's Financial Strength distribution charts can be found below:

* The bar in red indicates where Vishvprabha Ventures's Financial Strength falls into.



Vishvprabha Ventures Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Vishvprabha Ventures's Interest Expense for the months ended in Dec. 2023 was ₹-3.22 Mil. Its Operating Income for the months ended in Dec. 2023 was ₹-0.60 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was ₹0.00 Mil.

Vishvprabha Ventures's Interest Coverage for the quarter that ended in Dec. 2023 is

Vishvprabha Ventures did not have earnings to cover the interest expense.

The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Vishvprabha Ventures Ltds earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

2. Debt to revenue ratio. The lower, the better.

Vishvprabha Ventures's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 0) / 90.968
=0.00

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Vishvprabha Ventures has a Z-score of 0.73, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.73 is in distress zone. This implies bankruptcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Vishvprabha Ventures  (BOM:512064) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Vishvprabha Ventures has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Vishvprabha Ventures Financial Strength Related Terms

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Vishvprabha Ventures (BOM:512064) Business Description

Traded in Other Exchanges
N/A
Address
Nandivali Road, Dombivili East, Ground Floor, Avighna Heights, Survey no 45-4B Behind Sarvoday Park, Thane, MH, IND, 421201
Vishvprabha Ventures Ltd is engaged in the construction business. The company is engaged as a contractor and subcontractor for undertaking various construction activities services in area of Dombivli and Thane. It derives revenue through Construction contracts and Sale of services.

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