What is Horizon Construction Development Financial Strength?
Horizon Construction Development has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Horizon Construction Development Ltd 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.
Horizon Construction Development's Interest Coverage for the quarter that ended in Jun. 2024 was 2.00.
Horizon Construction Development's debt to revenue ratio for the quarter that ended in Jun. 2024 was 2.08.
As of today, Horizon Construction Development's Altman Z-Score is 0.85.
Competitive Comparison of Horizon Construction Development's Financial Strength
For the Rental & Leasing Services subindustry, Horizon Construction Development'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.
Horizon Construction Development's Financial Strength Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, Horizon Construction Development's Financial Strength distribution charts can be found below:
* The bar in red indicates where Horizon Construction Development's Financial Strength falls into.
Horizon Construction Development 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.
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:
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.
Horizon Construction Development has a Z-score of 0.85, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 0.85 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.
Horizon Construction Development (FRA:B7H) 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.
Horizon Construction Development has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Horizon Construction Development Financial Strength Related Terms
Thank you for viewing the detailed overview of Horizon Construction Development's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
Horizon Construction Development Business Description
Horizon Construction Development Ltd is an equipment operation service provider. The company's services include a nationwide operation network and one-stop equipment services including engineering construction, equipment leasing, equipment sales, spare parts sales, maintenance and manufacturing, and second-hand disposal. The company has three reportable operating segments, Operating lease services, Engineering and technical services, and Platform and other services. A majority of its revenue is generated from the Operating lease services segment which is engaged in leasing of equipment and materials to customers and generating revenue mainly from rental fees payable by customers.
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