What is Premium Catering (Holdings) Financial Strength?
Premium Catering (Holdings) has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Premium Catering (Holdings) 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.
Premium Catering (Holdings) did not have earnings to cover the interest expense.
Premium Catering (Holdings)'s debt to revenue ratio for the quarter that ended in Jun. 2024 was 1.05.
As of today, Premium Catering (Holdings)'s Altman Z-Score is 0.64.
Competitive Comparison of Premium Catering (Holdings)'s Financial Strength
For the Specialty Business Services subindustry, Premium Catering (Holdings)'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.
Premium Catering (Holdings)'s Financial Strength Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, Premium Catering (Holdings)'s Financial Strength distribution charts can be found below:
* The bar in red indicates where Premium Catering (Holdings)'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.
Premium Catering (Holdings) has a Z-score of 0.64, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 0.64 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.
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.
Premium Catering (Holdings) has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Premium Catering (Holdings) Financial Strength Related Terms
Thank you for viewing the detailed overview of Premium Catering (Holdings)'s Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
Premium Catering (Holdings) Ltd is a company that conducts its operations through its subsidiary is mainly engaged in food catering for functions, events, and workers in Singapore. Are specialized in Indian, Bangladesh, and Chinese cuisine and all its food products are Halal food which is permissible for consumption by Muslims to consume. Are an ACRA registered company and licensed by SFA to operate and process food business. Serve highquality value-packed food, company deliver's a reliable and dependable service to meet customer's daily meal requirements. The Company recognizes revenue from sales of budgeted prepared meals.
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