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CSE Global (SGX:544) Financial Strength : 5 (As of Jun. 2024)


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What is CSE Global Financial Strength?

CSE Global 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.

CSE Global's Interest Coverage for the quarter that ended in Jun. 2024 was 5.01. CSE Global's debt to revenue ratio for the quarter that ended in Jun. 2024 was 0.22. As of today, CSE Global's Altman Z-Score is 2.05.


Competitive Comparison of CSE Global's Financial Strength

For the Information Technology Services subindustry, CSE Global'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.


CSE Global's Financial Strength Distribution in the Software Industry

For the Software industry and Technology sector, CSE Global's Financial Strength distribution charts can be found below:

* The bar in red indicates where CSE Global's Financial Strength falls into.



CSE Global 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:

CSE Global's Interest Expense for the months ended in Jun. 2024 was S$-4.6 Mil. Its Operating Income for the months ended in Jun. 2024 was S$23.0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2024 was S$42.0 Mil.

CSE Global's Interest Coverage for the quarter that ended in Jun. 2024 is

Interest Coverage=-1*Operating Income (Q: Jun. 2024 )/Interest Expense (Q: Jun. 2024 )
=-1*22.957/-4.579
=5.01

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

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

CSE Global's Debt to Revenue Ratio for the quarter that ended in Jun. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(147.382 + 41.977) / 857.758
=0.22

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.

CSE Global has a Z-score of 2.05, indicating it is in Grey Zones. This implies that CSE Global 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 2.05 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.


CSE Global  (SGX:544) 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.

CSE Global has the Financial Strength Rank of 5.


CSE Global Financial Strength Related Terms

Thank you for viewing the detailed overview of CSE Global's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


CSE Global Business Description

Traded in Other Exchanges
Address
202 Bedok South Avenue 1, Building C No. 01-21, Singapore, SGP, 469332
CSE Global Ltd is an international technology company. It is engaged in the provision of total integrated industrial automation, information technology and intelligent transport solutions and investment holding. The company provide network and security solutions, targeting to Mining, Infrastructure, Oil, and Gas industry. The company has segments namely Energy; Infrastructure; and Mining & Mineral, out of which it derives maximum revenue from Infrastructure segment. The geographical regions of the company are Americas, Asia Pacific and EMEA.

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