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United Gulf Investment BSC (BAH:UGIC) Financial Strength : 0 (As of Dec. 2023)


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What is United Gulf Investment BSC Financial Strength?

United Gulf Investment BSC has the Financial Strength Rank of 0.

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.

United Gulf Investment BSC's Interest Coverage for the quarter that ended in Dec. 2023 was 0.54. United Gulf Investment BSC's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.49. As of today, United Gulf Investment BSC's Altman Z-Score is 1.50.


Competitive Comparison of United Gulf Investment BSC's Financial Strength

For the Asset Management subindustry, United Gulf Investment BSC'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.


United Gulf Investment BSC's Financial Strength Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, United Gulf Investment BSC's Financial Strength distribution charts can be found below:

* The bar in red indicates where United Gulf Investment BSC's Financial Strength falls into.



United Gulf Investment BSC 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:

United Gulf Investment BSC's Interest Expense for the months ended in Dec. 2023 was BHD-0.07 Mil. Its Operating Income for the months ended in Dec. 2023 was BHD0.04 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was BHD17.27 Mil.

United Gulf Investment BSC'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*0.038/-0.07
=0.54

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

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

United Gulf Investment BSC'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
=(1.097 + 17.269) / 37.72
=0.49

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.

United Gulf Investment BSC has a Z-score of 1.50, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.5 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.


United Gulf Investment BSC  (BAH:UGIC) 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.

United Gulf Investment BSC has the Financial Strength Rank of 0.


United Gulf Investment BSC Financial Strength Related Terms

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


United Gulf Investment BSC (BAH:UGIC) Business Description

Traded in Other Exchanges
N/A
Address
Road 2832, Block 428, P.O. Box 10177, Almoayyed Tower, Office 3202, Building 2504, Al-Seef District, Manama, BHR
United Gulf Investment Corp BSC is engaged in property leasing, buying, and selling of properties for the company, third-grade industrial maintenance works, and investment in local industrial projects. The company's investment objective includes developing and promoting industrial, chemical, and energy-related projects, in the Gulf region, identifying and investing in direct investment opportunities and investing in listed stocks and other financial instruments. Its operating segment includes Smelting and Investment activities. The company generates maximum revenue from the Smelting segment. the company has two geographical segments; the Kingdom of Bahrain and the Kingdom of Saudi Arabia.