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Khan Brothers PP Woven Bag Industries (DHA:KBPPWBIL) Financial Strength : 7 (As of Sep. 2023)


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What is Khan Brothers PP Woven Bag Industries Financial Strength?

Khan Brothers PP Woven Bag Industries has the Financial Strength Rank of 7.

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.

Khan Brothers PP Woven Bag Industries did not have earnings to cover the interest expense. Khan Brothers PP Woven Bag Industries's debt to revenue ratio for the quarter that ended in Sep. 2023 was 0.33. As of today, Khan Brothers PP Woven Bag Industries's Altman Z-Score is 146.45.


Competitive Comparison of Khan Brothers PP Woven Bag Industries's Financial Strength

For the Packaging & Containers subindustry, Khan Brothers PP Woven Bag Industries'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.


Khan Brothers PP Woven Bag Industries's Financial Strength Distribution in the Packaging & Containers Industry

For the Packaging & Containers industry and Consumer Cyclical sector, Khan Brothers PP Woven Bag Industries's Financial Strength distribution charts can be found below:

* The bar in red indicates where Khan Brothers PP Woven Bag Industries's Financial Strength falls into.



Khan Brothers PP Woven Bag Industries 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:

Khan Brothers PP Woven Bag Industries's Interest Expense for the months ended in Sep. 2023 was BDT-0.65 Mil. Its Operating Income for the months ended in Sep. 2023 was BDT-0.68 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was BDT14.85 Mil.

Khan Brothers PP Woven Bag Industries's Interest Coverage for the quarter that ended in Sep. 2023 is

Khan Brothers PP Woven Bag Industries did not have earnings to cover the interest expense.

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

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

Khan Brothers PP Woven Bag Industries'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
=(8.586 + 14.85) / 70.38
=0.33

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.

Khan Brothers PP Woven Bag Industries has a Z-score of 146.45, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 146.45 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.


Khan Brothers PP Woven Bag Industries  (DHA:KBPPWBIL) 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.

Khan Brothers PP Woven Bag Industries has the Financial Strength Rank of 7.


Khan Brothers PP Woven Bag Industries Financial Strength Related Terms

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Khan Brothers PP Woven Bag Industries (DHA:KBPPWBIL) Business Description

Traded in Other Exchanges
N/A
Address
15 DIT Road, KBG Tower, Malibagh Chowdhurypara, Dhaka, BGD, 1219
Khan Brothers PP Woven Bag Industries Ltd is manufacturers polypropylene (PP) woven bags. The company procure polypropylene yarn high-density polyethylene (HDPE), low-density polyethylene (LDPE), linear low-density polyethylene (LLDPE), calcium carbonate, printing ink, masterbatch from both overseas and local market to produce PP woven cloth/PP cloth laminated craft paper bags for cement, fertiliser, food grains, animal feeds, fish feeds, spinning, and others.

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