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Asian Hotels & Properties (COL:AHPL.N0000) Financial Strength : 6 (As of Dec. 2023)


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What is Asian Hotels & Properties Financial Strength?

Asian Hotels & Properties 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.

Asian Hotels & Properties's Interest Coverage for the quarter that ended in Dec. 2023 was 3.94. Asian Hotels & Properties's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.19. As of today, Asian Hotels & Properties's Altman Z-Score is 1.55.


Competitive Comparison of Asian Hotels & Properties's Financial Strength

For the Lodging subindustry, Asian Hotels & Properties'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.


Asian Hotels & Properties's Financial Strength Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Asian Hotels & Properties's Financial Strength distribution charts can be found below:

* The bar in red indicates where Asian Hotels & Properties's Financial Strength falls into.



Asian Hotels & Properties 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:

Asian Hotels & Properties's Interest Expense for the months ended in Dec. 2023 was රු-80 Mil. Its Operating Income for the months ended in Dec. 2023 was රු314 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was රු0 Mil.

Asian Hotels & Properties's Interest Coverage for the quarter that ended in Dec. 2023 is

Interest Coverage=-1*Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*314.405/-79.851
=3.94

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

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

Asian Hotels & Properties'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
=(2294.775 + 0) / 12053.172
=0.19

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.

Asian Hotels & Properties has a Z-score of 1.55, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.55 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.


Asian Hotels & Properties  (COL:AHPL.N0000) 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.

Asian Hotels & Properties has the Financial Strength Rank of 6.


Asian Hotels & Properties Financial Strength Related Terms

Thank you for viewing the detailed overview of Asian Hotels & Properties's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Asian Hotels & Properties (COL:AHPL.N0000) Business Description

Traded in Other Exchanges
N/A
Address
No. 77, Galle Road, Colombo, LKA, 03
Asian Hotels & Properties PLC is engaged in providing lodging services to local and foreign tours. The company operates in two reportable segments namely leisure, which encompasses two five star city hotels in Colombo under the brand 'Cinnamon Hotels and Resorts', and The Property segment concentrates primarily on rental income derived from the investment property adjoining the hotels . The majority of the revenue is generated from the Hotel segment.

Asian Hotels & Properties (COL:AHPL.N0000) Headlines

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