Esprit Stones has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Esprit Stones Ltd 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.
Esprit Stones's Interest Coverage for the quarter that ended in Mar. 2024 was 2.13.
Esprit Stones's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.49.
As of today, Esprit Stones's Altman Z-Score is 2.27.
Competitive Comparison of Esprit Stones's Financial Strength
For the Building Materials subindustry, Esprit Stones'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.
Esprit Stones's Financial Strength Distribution in the Building Materials Industry
For the Building Materials industry and Basic Materials sector, Esprit Stones's Financial Strength distribution charts can be found below:
* The bar in red indicates where Esprit Stones'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.
Esprit Stones has a Z-score of 2.27, indicating it is in Grey Zones. This implies that Esprit Stones is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.
Warning Sign:
Altman Z-score of 2.27 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.
* 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.
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.
Esprit Stones has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Esprit Stones Financial Strength Related Terms
Thank you for viewing the detailed overview of Esprit Stones's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
Esprit Stones Ltd is engaged in the manufacturing of engineered stones such as engineered quartz and marble. The products of the company are used for vanities & bathroom surfaces, kitchen countertops, floors and wall cladding furniture, and other interior surfaces used in various residential and non-residential applications. The company has two segments: Engineered Stones and Unsaturated Polyester Resin. The key revenue of the company is generated from Engineered Stones.
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