What is Gokak Textiles Financial Strength?
Gokak Textiles has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Gokak Textiles 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.
Gokak Textiles's Interest Coverage for the quarter that ended in Mar. 2024 was 1.16.
Gokak Textiles's debt to revenue ratio for the quarter that ended in Mar. 2024 was 1.31.
As of today, Gokak Textiles's Altman Z-Score is 0.45.
Competitive Comparison of Gokak Textiles's Financial Strength
For the Textile Manufacturing subindustry, Gokak Textiles'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.
Gokak Textiles's Financial Strength Distribution in the Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Gokak Textiles's Financial Strength distribution charts can be found below:
* The bar in red indicates where Gokak Textiles's Financial Strength falls into.
Gokak Textiles 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:
Gokak Textiles's Interest Expense for the
months ended in Mar. 2024 was ₹-106 Mil. Its Operating Income for the
months ended in Mar. 2024 was ₹124 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ₹2,524 Mil.
Gokak Textiles's Interest Coverage for the quarter that ended in Mar. 2024 is
The higher the ratio, the stronger the company's financial strength is.
2. Debt to revenue ratio. The lower, the better.
Gokak Textiles's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is
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.
Gokak Textiles has a Z-score of 0.45, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 0.45 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.
Gokak Textiles (BOM:532957) Business Description
Traded in Other Exchanges
N/A
Address
Number 1, 12th Cross, 2nd Floor, Ideal Homes, Near Jayanna Circle, Rajarasjeshwari Nagar, Bengaluru, KA, IND, 560098
Gokak Textiles Ltd is a holding company. It is engaged in the business of textiles, manufacturing cotton yarn, blended yarn, industrial fabrics, terry towels, t-shirts, polos, undergarments, and sweaters, among others. It is also engaged in the generation, transmission, distribution, and trading of hydropower and other renewal and non-renewal sources of energy. The company's product categories include dyed yarns, canvas, yarns, and made-ups. Its yarn products include knitting, weaving, towels, socks, sweaters, home furnishing, and industrial and customized yarns. Its canvas products category includes tents, tarpaulins, animal covers, and agriculture covers. Made-ups category includes towels and knitted garments. The company operates in one reportable segment which is Textile.
Gokak Textiles (BOM:532957) Headlines
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