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Prosper Construction Holdings (HKSE:06816) Financial Strength : 0 (As of Dec. 2024)


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What is Prosper Construction Holdings Financial Strength?

Prosper Construction Holdings has the Financial Strength Rank of 0.

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.

Prosper Construction Holdings's Interest Coverage for the quarter that ended in Dec. 2024 was 0.35. Prosper Construction Holdings's debt to revenue ratio for the quarter that ended in Dec. 2024 was 0.91. As of today, Prosper Construction Holdings's Altman Z-Score is 0.44.


Competitive Comparison of Prosper Construction Holdings's Financial Strength

For the Engineering & Construction subindustry, Prosper Construction 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.


Prosper Construction Holdings's Financial Strength Distribution in the Construction Industry

For the Construction industry and Industrials sector, Prosper Construction Holdings's Financial Strength distribution charts can be found below:

* The bar in red indicates where Prosper Construction Holdings's Financial Strength falls into.


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Prosper Construction 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:

Prosper Construction Holdings's Interest Expense for the months ended in Dec. 2024 was HK$-43 Mil. Its Operating Income for the months ended in Dec. 2024 was HK$15 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was HK$350 Mil.

Prosper Construction Holdings's Interest Coverage for the quarter that ended in Dec. 2024 is

Interest Coverage=-1*Operating Income (Q: Dec. 2024 )/Interest Expense (Q: Dec. 2024 )
=-1*14.892/-43.005
=0.35

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

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

Prosper Construction Holdings'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
=(1687.799 + 350.489) / 2244.708
=0.91

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.

Prosper Construction Holdings has a Z-score of 0.44, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.44 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.


Prosper Construction Holdings  (HKSE:06816) 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.

Prosper Construction Holdings has the Financial Strength Rank of 0.


Prosper Construction Holdings Financial Strength Related Terms

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


Prosper Construction Holdings Business Description

Traded in Other Exchanges
N/A
Address
6-8 Harbour Road, Rooms 03-08, 24th Floor, Shui On Centre, Wanchai, Hong Kong, HKG
Prosper Construction Holdings Ltd is an investment holding company. It has three operating segments that include marine construction works, auxiliary marine-related services, and general construction contracting services. The majority of its revenue derives from general construction contracting services. Geographically, the company has operations in Cambodia, Hong Kong, Indonesia, Macau, Mainland China, Pakistan, and Vietnam, with a majority of its revenue coming from mainland China.
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