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The Energy House Holding Co (KUW:ENERGYH) Financial Strength : 4 (As of Dec. 2024)


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What is The Energy House Holding Co Financial Strength?

The Energy House Holding Co has the Financial Strength Rank of 4.

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.

The Energy House Holding Co did not have earnings to cover the interest expense. The Energy House Holding Co's debt to revenue ratio for the quarter that ended in Dec. 2024 was 14.00. As of today, The Energy House Holding Co's Altman Z-Score is 2.44.


Competitive Comparison of The Energy House Holding Co's Financial Strength

For the Oil & Gas E&P subindustry, The Energy House Holding 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.


The Energy House Holding Co's Financial Strength Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, The Energy House Holding Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where The Energy House Holding Co's Financial Strength falls into.


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The Energy House Holding 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:

The Energy House Holding Co's Interest Expense for the months ended in Dec. 2024 was KWD-0.00 Mil. Its Operating Income for the months ended in Dec. 2024 was KWD-0.28 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was KWD0.03 Mil.

The Energy House Holding Co's Interest Coverage for the quarter that ended in Dec. 2024 is

The Energy House Holding 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.

The Energy House Holding 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
=(0.022 + 0.034) / 0.004
=14.00

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.

The Energy House Holding Co has a Z-score of 2.44, indicating it is in Grey Zones. This implies that The Energy House Holding Co is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.44 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* 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.


The Energy House Holding Co  (KUW:ENERGYH) 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.

The Energy House Holding Co has the Financial Strength Rank of 4.


The Energy House Holding Co Financial Strength Related Terms

Thank you for viewing the detailed overview of The Energy House Holding Co's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


The Energy House Holding Co Business Description

Traded in Other Exchanges
N/A
Address
Abdullah Al-Mubarak Street, P.O. Box 21909, Al-Enmaa Tower, 14th Floor, Mirqab, Safat, Kuwait, KWT, 13080
The Energy House Holding Co that specializes in investments in medium-sized entities in the energy sector. The company majorly focuses on owning shares in both Kuwaiti and foreign joint stock companies, as well as in Kuwaiti or foreign limited liability companies, sometimes even creating new ones. It's all about smartly managing these investments, ensuring it grow and perform well. The company also helps by lending money when needed and sponsoring encouraging projects. This way, it plays a substantial role in supporting businesses and initiatives, both at home and abroad. Overall, the parent company's operations center on making astute investments, effective management, and providing assistance where it is utmost needed.

The Energy House Holding Co Headlines

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