What is Kuwait And Middle East Financial Investment Co Financial Strength?
Kuwait And Middle East Financial Investment 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:
Kuwait And Middle East Financial Investment 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.
Kuwait And Middle East Financial Investment Co did not have earnings to cover the interest expense.
Kuwait And Middle East Financial Investment Co's debt to revenue ratio for the quarter that ended in Dec. 2024 was 24.04.
As of today, Kuwait And Middle East Financial Investment Co's Altman Z-Score is 0.46.
Competitive Comparison of Kuwait And Middle East Financial Investment Co's Financial Strength
For the Asset Management subindustry, Kuwait And Middle East Financial Investment 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.
Kuwait And Middle East Financial Investment Co's Financial Strength Distribution in the Asset Management Industry
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:
Kuwait And Middle East Financial Investment Co did not have earnings to cover the interest expense.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Kuwait And Middle East Financial Investment Co interest coverage is 1.75, which is low.
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.
Kuwait And Middle East Financial Investment Co has a Z-score of 0.46, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 0.46 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.
Kuwait And Middle East Financial Investment Co (KUW:KMEFIC) 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.
Kuwait And Middle East Financial Investment 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.
Kuwait And Middle East Financial Investment Co Financial Strength Related Terms
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Kuwait And Middle East Financial Investment Co Business Description
Kuwait And Middle East Financial Investment Co is a Kuwait-based asset management company. The business activity of the group functions through Asset Management, Brokerage and Online Trading, Credit Operations, and Investment, Real Estate and Treasury segments, and Rental and leasing activities. The Asset Management segment is engaged in providing third-party fund and portfolio management services on a fiduciary basis. Besides, the firm is also engaged in other activities such as providing margin loans, money market placements, real estate activities, and proprietary trading in equity stocks and funds. Geographically, the business presence of the firm is seen in both Kuwait and the international market.
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