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IFIC Bank (DHA:IFIC) Financial Strength : 6 (As of Jun. 2023)


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What is IFIC Bank Financial Strength?

IFIC Bank 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.

GuruFocus does not calculate IFIC Bank's interest coverage with the available data. IFIC Bank's debt to revenue ratio for the quarter that ended in Jun. 2023 was 2.01. Altman Z-Score does not apply to banks and insurance companies.


IFIC Bank 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:

IFIC Bank's Interest Expense for the months ended in Jun. 2023 was BDT-5,850 Mil. Its Operating Income for the months ended in Jun. 2023 was BDT0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2023 was BDT28,448 Mil.

IFIC Bank's Interest Coverage for the quarter that ended in Jun. 2023 is

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

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. IFIC Bank PLC has enough cash to cover all of its debt. Its financial situation is stable.

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

IFIC Bank's Debt to Revenue Ratio for the quarter that ended in Jun. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 28447.514) / 14178.684
=2.01

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.

Altman Z-Score does not apply to banks and insurance companies.

* 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.


IFIC Bank  (DHA:IFIC) 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.

IFIC Bank has the Financial Strength Rank of 6.


IFIC Bank Financial Strength Related Terms

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IFIC Bank (DHA:IFIC) Business Description

Traded in Other Exchanges
N/A
Address
IFIC Tower, 61 Purana Paltan, GPO Box : 2229, Dhaka, BGD, 1000
IFIC Bank PLC is a commercial banking company in Bangladesh. The company provides corporate banking, retail banking internet banking, and SME banking. The company is also engaged in Treasury and capital market offering Cash Management, Liquidity Planning, Liquidity Protection, Trading of Foreign Exchange and Money Market Instruments, and Risk Management. Its segments are Corporate; SME; Short term Agri credit; Consumer and Others. It derives interest income from the Conventional banking unit and Off-Shore banking unit.