Far East Horizon 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:
Far East Horizon 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.
Far East Horizon's Interest Coverage for the quarter that ended in Dec. 2024 was 4.78.
Far East Horizon's debt to revenue ratio for the quarter that ended in Dec. 2024 was 6.74.
As of today, Far East Horizon's Altman Z-Score is 0.44.
Competitive Comparison of Far East Horizon's Financial Strength
For the Credit Services subindustry, Far East Horizon'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.
Far East Horizon's Financial Strength Distribution in the Credit Services Industry
For the Credit Services industry and Financial Services sector, Far East Horizon's Financial Strength distribution charts can be found below:
* The bar in red indicates where Far East Horizon'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.
Far East Horizon has a Z-score of 0.44, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 0.44 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.
Far East Horizon (STU:F6H) Financial Strength Explanation
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.
Far East Horizon 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.
Far East Horizon Financial Strength Related Terms
Thank you for viewing the detailed overview of Far East Horizon's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
Far East Horizon Ltd is a specialty finance provider. Its service offerings include financial leasing and advisory, hospital investment and operation, equipment operation services, trading, and brokerage services as well as engineering management services, etc. The company operates in two segments; Financial, lease and advisory, and Industrial operation and management. A majority of its revenue is generated from the Financial, lease and advisory segment, which is engaged in providing direct finance leasing, sale-leaseback, factoring, entrusted loans, operating leases and sale of related equipment and materials, advisory services, and construction services. Geographically, the company derives maximum revenue from Mainland China, followed by Hong Kong and other locations.
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