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Sanderson Design Group (STU:5H7) Financial Strength : 9 (As of Jan. 2024)


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What is Sanderson Design Group Financial Strength?

Sanderson Design Group has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Sanderson Design Group PLC 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.

Sanderson Design Group's Interest Coverage for the quarter that ended in Jan. 2024 was 81.65. Sanderson Design Group's debt to revenue ratio for the quarter that ended in Jan. 2024 was 0.05. As of today, Sanderson Design Group's Altman Z-Score is 3.95.


Competitive Comparison of Sanderson Design Group's Financial Strength

For the Furnishings, Fixtures & Appliances subindustry, Sanderson Design 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.


Sanderson Design Group's Financial Strength Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Sanderson Design Group's Financial Strength distribution charts can be found below:

* The bar in red indicates where Sanderson Design Group's Financial Strength falls into.



Sanderson Design 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:

Sanderson Design Group's Interest Expense for the months ended in Jan. 2024 was €-0.1 Mil. Its Operating Income for the months ended in Jan. 2024 was €4.4 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2024 was €4.3 Mil.

Sanderson Design Group's Interest Coverage for the quarter that ended in Jan. 2024 is

Interest Coverage=-1*Operating Income (Q: Jan. 2024 )/Interest Expense (Q: Jan. 2024 )
=-1*4.409/-0.054
=81.65

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

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Sanderson Design Group PLC has enough cash to cover all of its debt. Its financial situation is stable.

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

Sanderson Design Group's Debt to Revenue Ratio for the quarter that ended in Jan. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Jan. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1.691 + 4.311) / 121.188
=0.05

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.

Sanderson Design Group has a Z-score of 3.95, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.95 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.


Sanderson Design Group  (STU:5H7) 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.

Sanderson Design Group has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.


Sanderson Design Group Financial Strength Related Terms

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Sanderson Design Group (STU:5H7) Business Description

Traded in Other Exchanges
Address
Oxford Road, Chalfont House, Denham, GBR, UB9 4DX
Sanderson Design Group PLC is a luxury interior furnishings company that designs, manufactures, and markets wallpapers and fabrics together with a wide range of ancillary interior products. The reportable divisions are Brands and Manufacturing. Brands division comprising the design, marketing, sales, distribution, and licensing activities of Sanderson, Morris and Co., Harlequin, Anthology, Clarke, and Clarke and Studio G brands operated from the United Kingdom and its foreign subsidiaries in the United States, France, Russia, and Germany. The manufacturing division comprises the wallcovering and printed fabric manufacturing businesses operated by Anstey and Standfast respectively. The majority of the revenue is generated from the Brands division.

Sanderson Design Group (STU:5H7) Headlines

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