What is Kuwait Real Estate Co Financial Strength?
Kuwait Real Estate 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 Real Estate 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 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.
Kuwait Real Estate Co's Interest Coverage for the quarter that ended in Mar. 2024 was 1.39.
Kuwait Real Estate Co's debt to revenue ratio for the quarter that ended in Mar. 2024 was 6.65.
As of today, Kuwait Real Estate Co's Altman Z-Score is 1.00.
Competitive Comparison of Kuwait Real Estate Co's Financial Strength
For the Real Estate Services subindustry, Kuwait Real Estate 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 Real Estate Co's Financial Strength Distribution in the Real Estate Industry
For the Real Estate industry and Real Estate sector, Kuwait Real Estate Co's Financial Strength distribution charts can be found below:
* The bar in red indicates where Kuwait Real Estate Co's Financial Strength falls into.
Kuwait Real Estate 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:
Kuwait Real Estate Co's Interest Expense for the
months ended in Mar. 2024 was KWD-3.13 Mil. Its Operating Income for the
months ended in Mar. 2024 was KWD4.35 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was KWD193.48 Mil.
Kuwait Real Estate Co's Interest Coverage for the quarter that ended in Mar. 2024 is
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 Real Estate Co interest coverage is 1.47, which is low.
2. Debt to revenue ratio. The lower, the better.
Kuwait Real Estate Co's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is
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.
Kuwait Real Estate Co has a Z-score of 1.00, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 1 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 Real Estate Co (KUW:KRE) Business Description
Traded in Other Exchanges
N/A
Address
Darwazat Abdul Razak Street, P.O Box 1257, 8th Floor, Block B, Souk Al Kuwait Building, Safat, Kuwait City, KWT, 13013
Kuwait Real Estate Co is a Kuwait-based shareholding company that operates in the real estate sector. It is engaged in dealing with a range of real estate activities, including the sale, purchase, renting out, and leasing of lands and real estate properties, erecting buildings, prepare and implementing studies of private and public real estate projects. It has two operating segments, including real estate and investment. The real estate segment contributes to the majority of the revenue. Its geographical segments are Kuwait; Other Middle Eastern Countries; the United States, Europe, and other countries.
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