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Equipment Holding Co KSCC (KUW:EQUIPMENT) Financial Strength : 0 (As of Dec. 2024)


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What is Equipment Holding Co KSCC Financial Strength?

Equipment Holding Co KSCC 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.

Equipment Holding Co KSCC did not have earnings to cover the interest expense. Equipment Holding Co KSCC's debt to revenue ratio for the quarter that ended in Dec. 2024 was 53.63. As of today, Equipment Holding Co KSCC's Altman Z-Score is -1.04.


Competitive Comparison of Equipment Holding Co KSCC's Financial Strength

For the Industrial Distribution subindustry, Equipment Holding Co KSCC'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.


Equipment Holding Co KSCC's Financial Strength Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, Equipment Holding Co KSCC's Financial Strength distribution charts can be found below:

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


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Equipment Holding Co KSCC 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:

Equipment Holding Co KSCC's Interest Expense for the months ended in Dec. 2024 was KWD0.35 Mil. Its Operating Income for the months ended in Dec. 2024 was KWD-1.67 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was KWD0.30 Mil.

Equipment Holding Co KSCC's Interest Coverage for the quarter that ended in Dec. 2024 is

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

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

Equipment Holding Co KSCC'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
=(0.129 + 0.3) / 0.008
=53.63

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.

Equipment Holding Co KSCC has a Z-score of -1.04, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of -1.04 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.


Equipment Holding Co KSCC  (KUW:EQUIPMENT) 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.

Equipment Holding Co KSCC has the Financial Strength Rank of 0.


Equipment Holding Co KSCC Financial Strength Related Terms

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Equipment Holding Co KSCC Business Description

Traded in Other Exchanges
N/A
Address
Safat, P.O. Box 435, Kuwait City, KWT, 13005
Equipment Holding Co KSCC is a trading and industrial group in Kuwait that is involved in investing in the local construction market. Some of its services include Trading Heavy Construction and Industrial Equipment, Spare parts and Maintenance, and Onsite assistance and services among others. The Group has four operating segments: Trading in construction equipment ;Construction, leasing and maintenance; Properties and Investments. Leasing of equipment and construction contracts derive the majority of revenue for the firm.

Equipment Holding Co KSCC Headlines

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