What is Hindware Home Innovation Financial Strength?
Hindware Home Innovation 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:
Hindware Home Innovation 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.
Hindware Home Innovation did not have earnings to cover the interest expense.
Hindware Home Innovation's debt to revenue ratio for the quarter that ended in Dec. 2024 was 0.00.
As of today, Hindware Home Innovation's Altman Z-Score is 1.67.
Competitive Comparison of Hindware Home Innovation's Financial Strength
For the Furnishings, Fixtures & Appliances subindustry, Hindware Home Innovation'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.
Hindware Home Innovation's Financial Strength Distribution in the Furnishings, Fixtures & Appliances Industry
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Hindware Home Innovation's Financial Strength distribution charts can be found below:
* The bar in red indicates where Hindware Home Innovation'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:
Hindware Home Innovation 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. Hindware Home Innovation Ltds earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.
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.
Hindware Home Innovation has a Z-score of 1.67, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 1.67 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.
Hindware Home Innovation (NSE:HINDWAREAP) 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.
Hindware Home Innovation 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.
Hindware Home Innovation Financial Strength Related Terms
Thank you for viewing the detailed overview of Hindware Home Innovation's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
Hindware Home Innovation Ltd is engaged in manufacturing, selling and trading of building products, glass products, consumer products, plastic products, and retail businesses. Its product portfolio includes Kitchen Ensemble, Water heaters, Air coolers, Water purifiers, Air purifiers, and Window vents, among other products. Some of its brands are Hindware, Moonbow and Evok. The segments of the company include Building Products, Consumer appliances, and Retail business. The group operates in India. The company generates the majority of its revenue from the Building products segment.
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