GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Wisdom Marine Lines Co Ltd (TPE:2637) » Definitions » Financial Strength

Wisdom Marine Lines Co (TPE:2637) Financial Strength : 3 (As of Dec. 2024)


View and export this data going back to 2010. Start your Free Trial

What is Wisdom Marine Lines Co Financial Strength?

Wisdom Marine Lines 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:

Wisdom Marine Lines 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 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.

Wisdom Marine Lines Co's Interest Coverage for the quarter that ended in Dec. 2024 was 2.86. Wisdom Marine Lines Co's debt to revenue ratio for the quarter that ended in Dec. 2024 was 1.69. As of today, Wisdom Marine Lines Co's Altman Z-Score is 1.89.


Competitive Comparison of Wisdom Marine Lines Co's Financial Strength

For the Marine Shipping subindustry, Wisdom Marine Lines 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.


Wisdom Marine Lines Co's Financial Strength Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Wisdom Marine Lines Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Wisdom Marine Lines Co's Financial Strength falls into.


;
;

Wisdom Marine Lines 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:

Wisdom Marine Lines Co's Interest Expense for the months ended in Dec. 2024 was NT$-446 Mil. Its Operating Income for the months ended in Dec. 2024 was NT$1,275 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was NT$24,442 Mil.

Wisdom Marine Lines Co's Interest Coverage for the quarter that ended in Dec. 2024 is

Interest Coverage=-1*Operating Income (Q: Dec. 2024 )/Interest Expense (Q: Dec. 2024 )
=-1*1274.567/-446.007
=2.86

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

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Wisdom Marine Lines Co Ltd interest coverage is 3.44, which is low.

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

Wisdom Marine Lines Co's Debt to Revenue Ratio for the quarter that ended in Dec. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(7285.079 + 24441.637) / 18763.708
=1.69

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.

Wisdom Marine Lines Co has a Z-score of 1.89, indicating it is in Grey Zones. This implies that Wisdom Marine Lines Co 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 1.89 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.


Wisdom Marine Lines Co  (TPE:2637) 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.

Wisdom Marine Lines 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.


Wisdom Marine Lines Co Financial Strength Related Terms

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


Wisdom Marine Lines Co Business Description

Traded in Other Exchanges
N/A
Address
Sec. 2, Fushing South Road, No. 237, Room 711, 7th Floor, Taipei, TWN, 10667
Wisdom Marine Lines Co Ltd is a transportation and logistics company domiciled in Cayman Island. The company's principal business is the acquisition, management, and operation of dry bulk vessels, with a focus on the handysize sector. It provides marine cargo transportation services, services related to maintenance, vessel leasing, and shipping agency and management services. Geographically, the company derives maximum revenue from its customers in Singapore followed by the Netherlands, Denmark, Panama, Switzerland, Germany, and other regions.

Wisdom Marine Lines Co Headlines

No Headlines