Gulf Bank KSC (KUW:GBK) Financial Strength : 1 (As of Mar. 2024)

View and export this data going back to 1984. Start your Free Trial

What is Gulf Bank KSC Financial Strength?

Gulf Bank KSC has the Financial Strength Rank of 1. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Gulf Bank KSC 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.

GuruFocus does not calculate Gulf Bank KSC's interest coverage with the available data. Gulf Bank KSC's debt to revenue ratio for the quarter that ended in Mar. 2024 was 3.18. Altman Z-Score does not apply to banks and insurance companies.

Gulf Bank KSC 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:

Gulf Bank KSC's Interest Expense for the months ended in Mar. 2024 was KWD-60.2 Mil. Its Operating Income for the months ended in Mar. 2024 was KWD0.0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was KWD614.6 Mil.

Gulf Bank KSC'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.

Gulf Bank KSC's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is

Debt to Revenue Ratio	=	Total Debt (Q: Mar. 2024 )			/	Revenue
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Revenue
	=	(0	+	614.598)	/	193.12
	=	3.18

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.

Gulf Bank KSC (KUW:GBK) 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.

Gulf Bank KSC has the Financial Strength Rank of 1. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Gulf Bank KSC Financial Strength Related Terms

Thank you for viewing the detailed overview of Gulf Bank KSC's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.

Gulf Bank KSC (KUW:GBK) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Gulf Bank KSC (KUW:GBK) » Definitions » Financial Strength

Traded in Other Exchanges

N/A

Address

Mubarak Al Kabir Street, P. O. Box 3200, Safat, Kuwait, KWT, 13032

Website

https://www.e-gulfbank.com

Gulf Bank KSC is predominantly a Kuwait-based banking service company. The bank's business activities are mapped into two business lines which are Commercial Banking, Treasury & Investments. Commercial Banking engages in the acceptance of deposits from individuals, corporate and institutional customers, and providing consumer loans, overdrafts, credit card facilities, and funds transfer facilities to individuals; and other credit facilities to corporate and institutional customers. The Treasury & Investments segment provides money market, trading, and treasury services, as well as the management of the Bank's funding operations by use of Kuwait Government treasury bonds, government securities, placements, and acceptances with other banks.