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Hachijuni Bank (TSE:8359) Financial Strength : 2 (As of Dec. 2023)


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What is Hachijuni Bank Financial Strength?

Hachijuni Bank has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Hachijuni Bank Ltd 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 Hachijuni Bank's interest coverage with the available data. Hachijuni Bank's debt to revenue ratio for the quarter that ended in Dec. 2023 was 19.52. Altman Z-Score does not apply to banks and insurance companies.


Hachijuni 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:

Hachijuni Bank's Interest Expense for the months ended in Dec. 2023 was 円-9,375 Mil. Its Operating Income for the months ended in Dec. 2023 was 円0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was 円3,317,392 Mil.

Hachijuni Bank's Interest Coverage for the quarter that ended in Dec. 2023 is

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

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

Hachijuni Bank'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
=(0 + 3317392) / 169964
=19.52

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.


Hachijuni Bank  (TSE:8359) 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.

Hachijuni Bank has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Hachijuni Bank Financial Strength Related Terms

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Hachijuni Bank (TSE:8359) Business Description

Traded in Other Exchanges
Address
178-8 Okada, Nagano, JPN, 380-8682
Hachijuni Bank Ltd is a Japan-based company that is principally engaged in banking. The company is a regional bank, with its business mainly based in Nagano Prefecture. The company's core business segments consist of the leasing business segment and the banking business segment, which includes the banking and credit card businesses. The company generates the majority of revenue from the banking business segment. The majority of its branches are located in certain areas of Japan, and the firm also has a business presence in overseas markets such as Hong Kong, Dalian, Shanghai, and Bangkok.