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Komercni Banka AS (Komercni Banka AS) Financial Strength : 3 (As of Mar. 2024)


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What is Komercni Banka AS Financial Strength?

Komercni Banka AS 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:

Komercni Banka AS 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.

GuruFocus does not calculate Komercni Banka AS's interest coverage with the available data. Komercni Banka AS's debt to revenue ratio for the quarter that ended in Mar. 2024 was 2.24. Altman Z-Score does not apply to banks and insurance companies.


Komercni Banka AS 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:

Komercni Banka AS's Interest Expense for the months ended in Mar. 2024 was $0 Mil. Its Operating Income for the months ended in Mar. 2024 was $0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $3,386 Mil.

Komercni Banka AS's Interest Coverage for the quarter that ended in Mar. 2024 is

GuruFocus does not calculate Komercni Banka AS's interest coverage with the available data.

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

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

Komercni Banka AS'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
=(0 + 3385.832) / 1511.404
=2.24

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.


Komercni Banka AS  (OTCPK:KMERF) 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.

Komercni Banka AS 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.


Komercni Banka AS Financial Strength Related Terms

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Komercni Banka AS (Komercni Banka AS) Business Description

Traded in Other Exchanges
Address
Na Prikope 33/969, P.O. BOX 839, Prague 1, CZE, 114 07
Komercni Banka AS is a universal bank providing a wide range of retail, corporate, and investment banking activities. These activities are complemented by specialized financial services provided by its subsidiaries. The bank operates primarily in the Czech Republic, as well as providing some services to corporate clients in Slovakia. The bank's strategy emphasizes long-term client relationships and creating solutions based on client feedback. Most of the bank's net revenue is net interest income primarily from loans and advances to customers. The bank's loan portfolio is tilted toward the real estate, wholesale, and transportation industries, as well as public administration.