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Kuo Yang Construction Co (TPE:2505) Financial Strength : 3 (As of Mar. 2024)


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What is Kuo Yang Construction Co Financial Strength?

Kuo Yang Construction Co 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:

Kuo Yang Construction Co 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 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.

Kuo Yang Construction Co did not have earnings to cover the interest expense. Kuo Yang Construction Co's debt to revenue ratio for the quarter that ended in Mar. 2024 was 11.23. As of today, Kuo Yang Construction Co's Altman Z-Score is 1.59.


Competitive Comparison of Kuo Yang Construction Co's Financial Strength

For the Real Estate - Development subindustry, Kuo Yang Construction 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.


Kuo Yang Construction Co's Financial Strength Distribution in the Real Estate Industry

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

* The bar in red indicates where Kuo Yang Construction Co's Financial Strength falls into.



Kuo Yang Construction 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:

Kuo Yang Construction Co's Interest Expense for the months ended in Mar. 2024 was NT$-3.9 Mil. Its Operating Income for the months ended in Mar. 2024 was NT$-13.6 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was NT$1.0 Mil.

Kuo Yang Construction Co's Interest Coverage for the quarter that ended in Mar. 2024 is

Kuo Yang Construction Co 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.

Kuo Yang Construction 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
=(7174.995 + 1.038) / 639.16
=11.23

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.

Kuo Yang Construction Co has a Z-score of 1.59, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.59 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.


Kuo Yang Construction Co  (TPE:2505) 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.

Kuo Yang Construction Co 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.


Kuo Yang Construction Co Financial Strength Related Terms

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Kuo Yang Construction Co (TPE:2505) Business Description

Traded in Other Exchanges
N/A
Address
Zhongxiao East Road, 18th Floor, No. 555, Section 4, Taipei City, TWN
Kuo Yang Construction Co Ltd is a Taiwan based company. The company is engaged in the construction of public housing and the lease and sales of commercial residential buildings, industrial plants, and commercial buildings.

Kuo Yang Construction Co (TPE:2505) Headlines

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