GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Singapore Post Ltd (OTCPK:SPSTY) » Definitions » Financial Strength

Singapore Post (Singapore Post) Financial Strength : 6 (As of Sep. 2023)


View and export this data going back to 2008. Start your Free Trial

What is Singapore Post Financial Strength?

Singapore Post 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.

Singapore Post's Interest Coverage for the quarter that ended in Sep. 2023 was 2.25. Singapore Post's debt to revenue ratio for the quarter that ended in Sep. 2023 was 0.41. As of today, Singapore Post's Altman Z-Score is 1.49.


Competitive Comparison of Singapore Post's Financial Strength

For the Integrated Freight & Logistics subindustry, Singapore Post'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.


Singapore Post's Financial Strength Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Singapore Post's Financial Strength distribution charts can be found below:

* The bar in red indicates where Singapore Post's Financial Strength falls into.



Singapore Post 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:

Singapore Post's Interest Expense for the months ended in Sep. 2023 was $-11 Mil. Its Operating Income for the months ended in Sep. 2023 was $24 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was $475 Mil.

Singapore Post's Interest Coverage for the quarter that ended in Sep. 2023 is

Interest Coverage=-1*Operating Income (Q: Sep. 2023 )/Interest Expense (Q: Sep. 2023 )
=-1*24.019/-10.664
=2.25

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

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

Singapore Post's Debt to Revenue Ratio for the quarter that ended in Sep. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(20.54 + 474.687) / 1213.302
=0.41

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.

Singapore Post has a Z-score of 1.49, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.49 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.


Singapore Post  (OTCPK:SPSTY) 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.

Singapore Post has the Financial Strength Rank of 6.


Singapore Post Financial Strength Related Terms

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


Singapore Post (Singapore Post) Business Description

Traded in Other Exchanges
Address
10 Eunos Road 8, Singapore Post Centre, Singapore, SGP, 408600
Singapore Post Ltd is a Singapore-based provider of mail and parcel delivery services. It operates through three business segments: post and parcel, logistics, and property. The post and parcel operating unit provides delivery services such as collecting, transporting, and distributing mail. The logistics segment provides services such as freight forwarding, warehousing, last-mile delivery, and distribution and fulfillment services. The property segment leases commercial and self-storage properties. SingPost has operations in Singapore and Australia, with the majority of its sales in Singapore. Additionally, the majority of SingPost's revenue is generated from its post and parcel business unit.

Singapore Post (Singapore Post) Headlines