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PT Asuransi Ramayana Tbk (ISX:ASRM) Financial Strength : 8 (As of Mar. 2024)


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What is PT Asuransi Ramayana Tbk Financial Strength?

PT Asuransi Ramayana Tbk has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

PT Asuransi Ramayana Tbk shows strong financial strength.

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.

PT Asuransi Ramayana Tbk's Interest Coverage for the quarter that ended in Mar. 2024 was 63.85. PT Asuransi Ramayana Tbk's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.01. Altman Z-Score does not apply to banks and insurance companies.


PT Asuransi Ramayana Tbk 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:

PT Asuransi Ramayana Tbk's Interest Expense for the months ended in Mar. 2024 was Rp-407 Mil. Its Operating Income for the months ended in Mar. 2024 was Rp0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was Rp11,013 Mil.

PT Asuransi Ramayana Tbk's Interest Coverage for the quarter that ended in Mar. 2024 is

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

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. PT Asuransi Ramayana Tbk has enough cash to cover all of its debt. Its financial situation is stable.

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

PT Asuransi Ramayana Tbk's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(4965.072 + 11013.269) / 2241325.408
=0.01

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.

Altman Z-Score does not apply to banks and insurance companies.

* 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.


PT Asuransi Ramayana Tbk  (ISX:ASRM) 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.

PT Asuransi Ramayana Tbk has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.


PT Asuransi Ramayana Tbk Financial Strength Related Terms

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PT Asuransi Ramayana Tbk (ISX:ASRM) Business Description

Traded in Other Exchanges
N/A
Address
Jalan Kebon Sirih No. 49, Jakarta, IDN, 10340
PT Asuransi Ramayana Tbk is an Indonesia-based company engaged in the general insurance business. Its products include property insurance, cargo insurance, marine hull insurance, aviation insurance, contractors' all risks (CAR) insurance, electronic equipment insurance, machinery breakdown insurance, personal accident insurance, money insurance, surety bonds, and customs bonds. It also offers Islamic insurance. The firm operates through the General Insurance and Office Building Rental segments. It generates the majority of the firm's revenue comes from the General Insurance segment.