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The Container Store Group (STU:36C) Financial Strength : 3 (As of Mar. 2024)


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What is The Container Store Group Financial Strength?

The Container Store Group 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:

The Container Store Group Inc 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 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.

The Container Store Group did not have earnings to cover the interest expense. The Container Store Group's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.75. As of today, The Container Store Group's Altman Z-Score is -0.41.


Competitive Comparison of The Container Store Group's Financial Strength

For the Specialty Retail subindustry, The Container Store Group'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.


The Container Store Group's Financial Strength Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, The Container Store Group's Financial Strength distribution charts can be found below:

* The bar in red indicates where The Container Store Group's Financial Strength falls into.



The Container Store Group 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:

The Container Store Group's Interest Expense for the months ended in Mar. 2024 was €-4.9 Mil. Its Operating Income for the months ended in Mar. 2024 was €-1.6 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was €508.9 Mil.

The Container Store Group's Interest Coverage for the quarter that ended in Mar. 2024 is

The Container Store Group did not have earnings to cover the interest expense.

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

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

The Container Store Group'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
=(57.829 + 508.884) / 758.216
=0.75

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.

The Container Store Group has a Z-score of -0.41, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of -0.41 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 Container Store Group  (STU:36C) 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.

The Container Store Group 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.


The Container Store Group Financial Strength Related Terms

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The Container Store Group (STU:36C) Business Description

Traded in Other Exchanges
Address
500 Freeport Parkway, Coppell, TX, USA, 75019
The Container Store Group Inc is a U.S. based specialty retailer of storage and organization products and solutions. It offers a collection of multifunctional and customizable storage and organization solutions. The company consists of two segments., The Container store segment which consists of retail stores, website and call center, as well as installation and organizational services business, and The Elfa segment which involves designing and manufacturing of component-based shelving and drawer systems and made-to-measure sliding doors. It derives a majority of the revenue from the Container store segment. The company sells its products in the US and other countries.

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