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Livestock Transport & Trading Co (KUW:CATTL) Financial Strength : 2 (As of Dec. 2024)


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What is Livestock Transport & Trading Co Financial Strength?

Livestock Transport & Trading Co has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Livestock Transport & Trading Co 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 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.

Livestock Transport & Trading Co did not have earnings to cover the interest expense. Livestock Transport & Trading Co's debt to revenue ratio for the quarter that ended in Dec. 2024 was 0.44. As of today, Livestock Transport & Trading Co's Altman Z-Score is 0.60.


Competitive Comparison of Livestock Transport & Trading Co's Financial Strength

For the Food Distribution subindustry, Livestock Transport & Trading Co'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.


Livestock Transport & Trading Co's Financial Strength Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Livestock Transport & Trading Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Livestock Transport & Trading Co's Financial Strength falls into.


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Livestock Transport & Trading Co 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:

Livestock Transport & Trading Co's Interest Expense for the months ended in Dec. 2024 was KWD-0.19 Mil. Its Operating Income for the months ended in Dec. 2024 was KWD-3.85 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was KWD12.54 Mil.

Livestock Transport & Trading Co's Interest Coverage for the quarter that ended in Dec. 2024 is

Livestock Transport & Trading Co did not have earnings to cover the interest expense.

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

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

Livestock Transport & Trading Co'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
=(7.451 + 12.535) / 45.82
=0.44

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.

Livestock Transport & Trading Co has a Z-score of 0.60, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.6 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.


Livestock Transport & Trading Co  (KUW:CATTL) 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.

Livestock Transport & Trading Co has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Livestock Transport & Trading Co Financial Strength Related Terms

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Livestock Transport & Trading Co Business Description

Traded in Other Exchanges
N/A
Address
Sulaibiya Agricultural Area, Block 12, P.O. Box 23727, Kuwait, KWT, 13098
Livestock Transport & Trading Co is engaged in livestock import & export business. It operates in three segments: Commercial, which includes purchasing, transporting, ranching, and selling the live and slaughtered sheep and all skins, intestines, and fertilizers, and also purchasing and selling fodder and chilled & frozen meat in wholesale and retail; Food processing segment includes meat processing and its classification in all products and selling it in wholesale; and Investments segment include investment portfolios managed by specialized companies and deposits. It generates the majority of its revenue from the Commercial segment. Its geographical segments are Kuwait, UAE, Australia, and South Africa, of which Kuwait accounts for majority of its revenue.

Livestock Transport & Trading Co Headlines

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