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Fast Ejendom Danmark AS (OCSE:FED) Financial Strength : 3 (As of Dec. 2024)


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What is Fast Ejendom Danmark AS Financial Strength?

Fast Ejendom Danmark AS 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:

Fast Ejendom Danmark AS 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.

Fast Ejendom Danmark AS's Interest Coverage for the quarter that ended in Dec. 2024 was 1.71. Fast Ejendom Danmark AS's debt to revenue ratio for the quarter that ended in Dec. 2024 was 2.35. As of today, Fast Ejendom Danmark AS's Altman Z-Score is 1.14.


Competitive Comparison of Fast Ejendom Danmark AS's Financial Strength

For the Real Estate Services subindustry, Fast Ejendom Danmark AS'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.


Fast Ejendom Danmark AS's Financial Strength Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Fast Ejendom Danmark AS's Financial Strength distribution charts can be found below:

* The bar in red indicates where Fast Ejendom Danmark AS's Financial Strength falls into.


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Fast Ejendom Danmark AS 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:

Fast Ejendom Danmark AS's Interest Expense for the months ended in Dec. 2024 was kr-11.0 Mil. Its Operating Income for the months ended in Dec. 2024 was kr18.9 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was kr747.5 Mil.

Fast Ejendom Danmark AS'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*18.853/-11.045
=1.71

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. Fast Ejendom Danmark AS interest coverage is 2.49, which is low.

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

Fast Ejendom Danmark AS'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
=(19.181 + 747.468) / 325.564
=2.35

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.

Fast Ejendom Danmark AS has a Z-score of 1.14, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.14 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.


Fast Ejendom Danmark AS  (OCSE:FED) 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.

Fast Ejendom Danmark AS 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.


Fast Ejendom Danmark AS Financial Strength Related Terms

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Fast Ejendom Danmark AS Business Description

Traded in Other Exchanges
Address
Ringager 4A, Brondby, DNK, 2605
Fast Ejendom Danmark AS Is a real estate investment firm. It invests in commercial and residential properties and mixed buildings with residential and commercial. The main activities are investment, letting, development, operational optimization and administration of the portfolio.

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