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Sumou Real Estate Co (SAU:4323) Financial Strength : 8 (As of Mar. 2024)


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What is Sumou Real Estate Co Financial Strength?

Sumou Real Estate Co has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Sumou Real Estate Co shows strong financial strength.

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.

Sumou Real Estate Co's Interest Coverage for the quarter that ended in Mar. 2024 was 53.05. Sumou Real Estate Co's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.06. As of today, Sumou Real Estate Co's Altman Z-Score is 3.84.


Competitive Comparison of Sumou Real Estate Co's Financial Strength

For the Real Estate - Development subindustry, Sumou Real Estate Co'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.


Sumou Real Estate Co's Financial Strength Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Sumou Real Estate Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Sumou Real Estate Co's Financial Strength falls into.



Sumou Real Estate Co 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:

Sumou Real Estate Co's Interest Expense for the months ended in Mar. 2024 was ﷼-0.3 Mil. Its Operating Income for the months ended in Mar. 2024 was ﷼16.0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ﷼18.0 Mil.

Sumou Real Estate Co's Interest Coverage for the quarter that ended in Mar. 2024 is

Interest Coverage=-1*Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*16.02/-0.302
=53.05

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

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

Sumou Real Estate Co's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1.931 + 18.031) / 323.864
=0.06

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.

Sumou Real Estate Co has a Z-score of 3.84, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.84 is strong.

* 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.


Sumou Real Estate Co  (SAU:4323) 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.

Sumou Real Estate Co has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.


Sumou Real Estate Co Financial Strength Related Terms

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Sumou Real Estate Co (SAU:4323) Business Description

Traded in Other Exchanges
N/A
Address
Prince Turki bin Abdulaziz street, Sumou Tower - P.O.Box 250, Al-Yarmouk District, AlKhobar, SAU, 31952
Sumou Real Estate Co is engaged in executing and managing real estate development and investment projects in the Kingdom of Saudi Arabia. The company's projects portfolio includes commercial centers, residential complexes, housing units, infrastructure for industrial, and commercial facilities, economic cities, and free zones.

Sumou Real Estate Co (SAU:4323) Headlines

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