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Sultan Center Food Products Co KSC (KUW:SULTAN) Financial Strength : 0 (As of Dec. 2024)


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What is Sultan Center Food Products Co KSC Financial Strength?

Sultan Center Food Products Co KSC 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.

Sultan Center Food Products Co KSC's Interest Coverage for the quarter that ended in Dec. 2024 was 0.95. Sultan Center Food Products Co KSC's debt to revenue ratio for the quarter that ended in Dec. 2024 was 0.88. As of today, Sultan Center Food Products Co KSC's Altman Z-Score is 0.51.


Competitive Comparison of Sultan Center Food Products Co KSC's Financial Strength

For the Grocery Stores subindustry, Sultan Center Food Products Co KSC'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.


Sultan Center Food Products Co KSC's Financial Strength Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Sultan Center Food Products Co KSC's Financial Strength distribution charts can be found below:

* The bar in red indicates where Sultan Center Food Products Co KSC's Financial Strength falls into.


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Sultan Center Food Products Co KSC 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:

Sultan Center Food Products Co KSC's Interest Expense for the months ended in Dec. 2024 was KWD-2.3 Mil. Its Operating Income for the months ended in Dec. 2024 was KWD2.2 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was KWD143.2 Mil.

Sultan Center Food Products Co KSC's Interest Coverage for the quarter that ended in Dec. 2024 is

Interest Coverage=-1*Operating Income (Q: Dec. 2024 )/Interest Expense (Q: Dec. 2024 )
=-1*2.212/-2.319
=0.95

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. Sultan Center Food Products Co KSCs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

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

Sultan Center Food Products Co KSC'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
=(18.758 + 143.17) / 184.688
=0.88

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.

Sultan Center Food Products Co KSC has a Z-score of 0.51, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.51 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.


Sultan Center Food Products Co KSC  (KUW:SULTAN) 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.

Sultan Center Food Products Co KSC has the Financial Strength Rank of 0.


Sultan Center Food Products Co KSC Financial Strength Related Terms

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Sultan Center Food Products Co KSC Business Description

Traded in Other Exchanges
N/A
Address
Airport road, 6th ring road, PO Box 26567, Sultan ben Essa complex, Dajeej, Kuwait City, KWT, 13126
Sultan Center Food Products Co KSC is an independent retailer. The company supplies supermarket items, perishables, and general merchandise in the Middle East. Its business units include Retail, Investments, Contracting, and Real Estate. The company offers fresh food, frozen food, dairy and bakery products, meat and seafood, baby food, fruits, pet food, health and beauty products, tobacco products, cleaning and home care products, home decor, toys and games, luggage and bags, and electronic products.

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