What is Action Construction Equipment Financial Strength?
Action Construction Equipment has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
Good Sign:
Action Construction Equipment Ltd shows strong financial strength.
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.
Action Construction Equipment's Interest Coverage for the quarter that ended in Dec. 2024 was 15.71.
Action Construction Equipment's debt to revenue ratio for the quarter that ended in Dec. 2024 was 0.00.
As of today, Action Construction Equipment's Altman Z-Score is 11.28.
Competitive Comparison of Action Construction Equipment's Financial Strength
For the Farm & Heavy Construction Machinery subindustry, Action Construction Equipment'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.
Action Construction Equipment's Financial Strength Distribution in the Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Action Construction Equipment's Financial Strength distribution charts can be found below:
* The bar in red indicates where Action Construction Equipment's Financial Strength falls into.
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:
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.
Action Construction Equipment has a Z-score of 11.28, indicating it is in Safe Zones. This implies the Z-Score is strong.
Good Sign:
Altman Z-score of 11.28 is strong.
* 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.
Action Construction Equipment (NSE:ACE) 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.
Action Construction Equipment has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
Action Construction Equipment Financial Strength Related Terms
Thank you for viewing the detailed overview of Action Construction Equipment's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
Action Construction Equipment Business Description
Action Construction Equipment Ltd is engaged in manufacturing material handling and construction equipment. It is engaged in the manufacturing and marketing of Hydraulic Mobile Cranes, Mobile Tower Cranes, Crawler Cranes, Truck Mounted Cranes; Material Handling Equipments like Forklifts, Road Construction Equipments like Backhoe loaders, Compactors, Motor graders and Agriculture Equipments like Tractors, Harvesters, Rotavators etc. The company's reportable segments are Cranes, Construction equipment, Material handling, and Agricultural equipment. The majority of its revenue is generated from its Cranes segment. Geographically, it derives maximum revenue from India and also has a presence in international markets.
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