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GHP Specialty Care AB (CHIX:GHPS) Financial Strength : 6 (As of Mar. 2022)


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What is GHP Specialty Care AB Financial Strength?

GHP Specialty Care AB has the Financial Strength Rank of 6.

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.

GHP Specialty Care AB's Interest Coverage for the quarter that ended in Mar. 2022 was 7.89. GHP Specialty Care AB's debt to revenue ratio for the quarter that ended in Mar. 2022 was 0.28. As of today, GHP Specialty Care AB's Altman Z-Score is 3.44.


Competitive Comparison of GHP Specialty Care AB's Financial Strength

For the Medical Care Facilities subindustry, GHP Specialty Care AB'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.


GHP Specialty Care AB's Financial Strength Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, GHP Specialty Care AB's Financial Strength distribution charts can be found below:

* The bar in red indicates where GHP Specialty Care AB's Financial Strength falls into.



GHP Specialty Care AB 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:

GHP Specialty Care AB's Interest Expense for the months ended in Mar. 2022 was kr-4 Mil. Its Operating Income for the months ended in Mar. 2022 was kr28 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2022 was kr200 Mil.

GHP Specialty Care AB's Interest Coverage for the quarter that ended in Mar. 2022 is

Interest Coverage=-1*Operating Income (Q: Mar. 2022 )/Interest Expense (Q: Mar. 2022 )
=-1*27.6/-3.5
=7.89

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

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

GHP Specialty Care AB's Debt to Revenue Ratio for the quarter that ended in Mar. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(275.5 + 199.5) / 1686.4
=0.28

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.

GHP Specialty Care AB has a Z-score of 3.44, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.44 is strong.

* 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.


GHP Specialty Care AB  (CHIX:GHPs) 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.

GHP Specialty Care AB has the Financial Strength Rank of 6.


GHP Specialty Care AB Financial Strength Related Terms

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GHP Specialty Care AB (CHIX:GHPS) Business Description

Traded in Other Exchanges
N/A
Address
Södra Hamngatan 45, Gothenburg, SWE, 411 06
GHP Specialty Care AB is a player in the healthcare sector. It is a Swedish health care provider that operates specialist clinics, primarily in the Nordic countries. GHP's clinics address various medical areas such as diabetes care, neurology, general surgery, sports medicine and arrhythmia. GHP has two segments, the Nordic Region and International. The company generates majority of its revenue from the Nordic Region. The Nordic Region business area conducts business within specialist care, such as spine surgery/spine care, orthopaedics, obesity surgery and diabetes care, gastroenterology, urology, general surgery, arrhythmia, sports medicine, plastic surgery, neurology and specialist dentistry via over 20 clinics.

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