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Stella International Holdings (Stella International Holdings) Financial Strength : 10 (As of Dec. 2023)


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What is Stella International Holdings Financial Strength?

Stella International Holdings has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Stella International Holdings Ltd shows strong financial strength.

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.

Stella International Holdings's Interest Coverage for the quarter that ended in Dec. 2023 was 225.67. Stella International Holdings's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.01. As of today, Stella International Holdings's Altman Z-Score is 5.89.


Competitive Comparison of Stella International Holdings's Financial Strength

For the Footwear & Accessories subindustry, Stella International Holdings'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.


Stella International Holdings's Financial Strength Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Stella International Holdings's Financial Strength distribution charts can be found below:

* The bar in red indicates where Stella International Holdings's Financial Strength falls into.



Stella International Holdings 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:

Stella International Holdings's Interest Expense for the months ended in Dec. 2023 was $-0 Mil. Its Operating Income for the months ended in Dec. 2023 was $99 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $11 Mil.

Stella International Holdings'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*99.069/-0.439
=225.67

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. Stella International Holdings Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

Stella International Holdings'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
=(4.194 + 11.05) / 1553.13
=0.01

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.

Stella International Holdings has a Z-score of 5.89, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 5.89 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.


Stella International Holdings  (OTCPK:SLNLY) 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.

Stella International Holdings has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.


Stella International Holdings Financial Strength Related Terms

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Stella International Holdings (Stella International Holdings) Business Description

Traded in Other Exchanges
Address
133 Hoi Bun Road, Flat C, 20th Floor, MG Tower, Kowloon, HKG
Stella International Holdings Ltd designs and manufactures footwear for its clients, who sell the products to consumers under their brand names. Stella's clients include many of the world's top casual footwear companies as well as several prominent fashion and high-fashion companies and brands. The firm operates in two segments. The Manufacturing segment engages in the sale and manufacture of footwear and handbag. The Footwear retailing and wholesaling segment engages in the sale of self-developed brands. The majority of revenue is from the manufacturing segment. Geographically, North America accounts for the majority of revenue.

Stella International Holdings (Stella International Holdings) Headlines

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