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TVS Supply Chain Solutions (NSE:TVSSCS) Financial Strength : 5 (As of Dec. 2023)


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What is TVS Supply Chain Solutions Financial Strength?

TVS Supply Chain Solutions has the Financial Strength Rank of 5.

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.

TVS Supply Chain Solutions's Interest Coverage for the quarter that ended in Dec. 2023 was 0.51. TVS Supply Chain Solutions's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.00. As of today, TVS Supply Chain Solutions's Altman Z-Score is 2.88.


Competitive Comparison of TVS Supply Chain Solutions's Financial Strength

For the Integrated Freight & Logistics subindustry, TVS Supply Chain Solutions'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.


TVS Supply Chain Solutions's Financial Strength Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, TVS Supply Chain Solutions's Financial Strength distribution charts can be found below:

* The bar in red indicates where TVS Supply Chain Solutions's Financial Strength falls into.



TVS Supply Chain Solutions 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:

TVS Supply Chain Solutions's Interest Expense for the months ended in Dec. 2023 was ₹-440 Mil. Its Operating Income for the months ended in Dec. 2023 was ₹224 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was ₹0 Mil.

TVS Supply Chain Solutions's Interest Coverage for the quarter that ended in Dec. 2023 is

Interest Coverage=-1*Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*224/-440.3
=0.51

The higher the ratio, the stronger the company's financial strength is.

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

TVS Supply Chain Solutions's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 0) / 88873.6
=0.00

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.

TVS Supply Chain Solutions has a Z-score of 2.88, indicating it is in Grey Zones. This implies that TVS Supply Chain Solutions 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 2.88 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.


TVS Supply Chain Solutions  (NSE:TVSSCS) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

TVS Supply Chain Solutions has the Financial Strength Rank of 5.


TVS Supply Chain Solutions Financial Strength Related Terms

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TVS Supply Chain Solutions (NSE:TVSSCS) Business Description

Traded in Other Exchanges
Address
10 Jawahar Road, Chokkikulam, Madurai, TN, IND, 625 002
TVS Supply Chain Solutions Ltd is engaged in the business of providing supply chain solution services. The company has been providing the entire basket of supply chain management services including aftermarket warehouse, in-plant warehouse, global supply chain management service, domestic supply chain management services, material handling services, and services relating to the installation and commissioning of telecom towers including managed services for telecom networks and associated supply chain management of the logistics activities for telecom service providers and OEMs.

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