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Global Ports Holding (CHIX:GPHL) Financial Strength : 2 (As of Sep. 2023)


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What is Global Ports Holding Financial Strength?

Global Ports Holding 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:

Global Ports Holding PLC 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.

Global Ports Holding's Interest Coverage for the quarter that ended in Sep. 2023 was 1.10. Global Ports Holding's debt to revenue ratio for the quarter that ended in Sep. 2023 was 3.50. As of today, Global Ports Holding's Altman Z-Score is 0.42.


Competitive Comparison of Global Ports Holding's Financial Strength

For the Marine Shipping subindustry, Global Ports Holding'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.


Global Ports Holding's Financial Strength Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Global Ports Holding's Financial Strength distribution charts can be found below:

* The bar in red indicates where Global Ports Holding's Financial Strength falls into.



Global Ports Holding 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:

Global Ports Holding's Interest Expense for the months ended in Sep. 2023 was £-31.2 Mil. Its Operating Income for the months ended in Sep. 2023 was £34.3 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was £550.7 Mil.

Global Ports Holding'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*34.332/-31.198
=1.10

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

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Global Ports Holding PLCs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

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

Global Ports Holding'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
=(46.728 + 550.688) / 170.614
=3.50

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.

Global Ports Holding has a Z-score of 0.42, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.42 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.


Global Ports Holding  (CHIX:GPHl) 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.

Global Ports Holding 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.


Global Ports Holding Financial Strength Related Terms

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Global Ports Holding (CHIX:GPHL) Business Description

Traded in Other Exchanges
Address
Buyukdere Cad Number 193, Levent 193 Plaza, Istanbul, TUR, 34394
Global Ports Holding PLC is an independent cruise port operator. The company serves the needs of the world's cruise lines, ferries, and mega yachts. The company's portfolio includes assets that range from major cruise hubs such as Barcelona and Venice to high-traffic core ports such as Valletta and Cagliari and Singapore cruise ports. It operates two growing commercial ports in Turkey and Montenegro. The group's reportable segments are Western Mediterranean & Atlantic region, Central Mediterranean region, Americas Region and Eastern Mediterranean and Adriatic region, Other operations.

Global Ports Holding (CHIX:GPHL) Headlines

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