GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Gujarat Hotels Ltd (BOM:507960) » Definitions » Financial Strength

Gujarat Hotels (BOM:507960) Financial Strength : 10 (As of Dec. 2024)


View and export this data going back to 1991. Start your Free Trial

What is Gujarat Hotels Financial Strength?

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

Good Sign:

Gujarat Hotels Ltd shows strong financial strength.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and 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.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Gujarat Hotels has no long-term debt (1). Gujarat Hotels's debt to revenue ratio for the quarter that ended in Dec. 2024 was 0.00. As of today, Gujarat Hotels's Altman Z-Score is 20.46.

(1) Note: An indication of "no long-term debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.


Competitive Comparison of Gujarat Hotels's Financial Strength

For the Lodging subindustry, Gujarat Hotels'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.


Gujarat Hotels's Financial Strength Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Gujarat Hotels's Financial Strength distribution charts can be found below:

* The bar in red indicates where Gujarat Hotels's Financial Strength falls into.


;
;

Gujarat Hotels 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:

Gujarat Hotels's Interest Expense for the months ended in Dec. 2024 was ₹0.00 Mil. Its Operating Income for the months ended in Dec. 2024 was ₹12.74 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was ₹0.00 Mil.

Gujarat Hotels's Interest Coverage for the quarter that ended in Dec. 2024 is

Gujarat Hotels had no long-term debt (1).

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

Good Sign:

Gujarat Hotels Ltd has no debt.

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

Gujarat Hotels's Debt to Revenue Ratio for the quarter that ended in Dec. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 0) / 56.228
=0.00

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.

Gujarat Hotels has a Z-score of 20.46, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 20.46 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.


Gujarat Hotels  (BOM:507960) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

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


Gujarat Hotels Financial Strength Related Terms

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


Gujarat Hotels Business Description

Traded in Other Exchanges
N/A
Address
R C Dutt Road, Welcom Hotel Vadodara, Alkapuri, Vadodara, GJ, IND, 390007
Gujarat Hotels Ltd is an Indian firm engaged in the business of lodging and hotel services. The firm is based in Vadodara and owns the Welcome hotels; operated by ITC. Business operations include a single segment; Hoteliering. The hotel provides three types of rooms: Executive Club, Corporate, and Standard Room. The hotel also operates a fine dining restaurant that serves day and night.

Gujarat Hotels Headlines

No Headlines