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Tsui Wah Holdings (HKSE:01314) Financial Strength : 6 (As of Sep. 2023)


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What is Tsui Wah Holdings Financial Strength?

Tsui Wah Holdings has the Financial Strength Rank of 6.

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.

Tsui Wah Holdings's Interest Coverage for the quarter that ended in Sep. 2023 was 2.14. Tsui Wah Holdings's debt to revenue ratio for the quarter that ended in Sep. 2023 was 0.27. As of today, Tsui Wah Holdings's Altman Z-Score is 1.11.


Competitive Comparison of Tsui Wah Holdings's Financial Strength

For the Restaurants subindustry, Tsui Wah Holdings'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.


Tsui Wah Holdings's Financial Strength Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Tsui Wah Holdings's Financial Strength distribution charts can be found below:

* The bar in red indicates where Tsui Wah Holdings's Financial Strength falls into.



Tsui Wah Holdings 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:

Tsui Wah Holdings's Interest Expense for the months ended in Sep. 2023 was HK$-5.2 Mil. Its Operating Income for the months ended in Sep. 2023 was HK$11.0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was HK$155.6 Mil.

Tsui Wah Holdings'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*11.011/-5.15
=2.14

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

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

Tsui Wah Holdings'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
=(114.719 + 155.552) / 994.57
=0.27

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.

Tsui Wah Holdings has a Z-score of 1.11, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.11 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.


Tsui Wah Holdings  (HKSE:01314) 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.

Tsui Wah Holdings has the Financial Strength Rank of 6.


Tsui Wah Holdings Financial Strength Related Terms

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Tsui Wah Holdings (HKSE:01314) Business Description

Traded in Other Exchanges
N/A
Address
1–7 Shing Chuen Road,, Unit A, 3 Floor Sunking Industry Building,, Tai Wai, Sha Tin New Territories, Hong Kong, HKG
Tsui Wah Holdings Ltd is an investment holding company. It is principally engaged in the provision of food catering services through restaurants in Hong Kong, the People's Republic of China, Macau, and Singapore. geographically the majority of its revenue comes from Mainland China.
Executives
Cheung Yu To 2103 Interests held jointly with another person
Ho Ting Chi 2103 Interests held jointly with another person
Chan Choi Fung 2202 Interest of your spouse
Lee Yuen Hong 2103 Interests held jointly with another person
Cheung Wai Keung 2103 Interests held jointly with another person
Cheung Yue Pui 2103 Interests held jointly with another person
Lam Hiu Man 2202 Interest of your spouse
Lui Ning 2202 Interest of your spouse
Tai Ngan Har Talia 2202 Interest of your spouse
Woo Chun Li 2202 Interest of your spouse

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