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Fudo Tetra (TSE:1813) Financial Strength : 6 (As of Dec. 2023)


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What is Fudo Tetra Financial Strength?

Fudo Tetra has the Financial Strength Rank of 6.

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.

Fudo Tetra's Interest Coverage for the quarter that ended in Dec. 2023 was 60.82. Fudo Tetra's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.08. As of today, Fudo Tetra's Altman Z-Score is 3.27.


Competitive Comparison of Fudo Tetra's Financial Strength

For the Engineering & Construction subindustry, Fudo Tetra'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.


Fudo Tetra's Financial Strength Distribution in the Construction Industry

For the Construction industry and Industrials sector, Fudo Tetra's Financial Strength distribution charts can be found below:

* The bar in red indicates where Fudo Tetra's Financial Strength falls into.



Fudo Tetra 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:

Fudo Tetra's Interest Expense for the months ended in Dec. 2023 was 円-17 Mil. Its Operating Income for the months ended in Dec. 2023 was 円1,034 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was 円650 Mil.

Fudo Tetra's Interest Coverage for the quarter that ended in Dec. 2023 is

Interest Coverage=-1*Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*1034/-17
=60.82

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

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

Fudo Tetra's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(4886 + 650) / 73160
=0.08

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.

Fudo Tetra has a Z-score of 3.27, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.27 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.


Fudo Tetra  (TSE:1813) 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.

Fudo Tetra has the Financial Strength Rank of 6.


Fudo Tetra Financial Strength Related Terms

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


Fudo Tetra (TSE:1813) Business Description

Traded in Other Exchanges
N/A
Address
7-2, Nihonbashi-koami-cho, 11th Floor, Pentel Building, Chuo-ku, Tokyo, JPN, 103-0016
Fudo Tetra Corp is engaged in the business of construction work. It operates through three businesses. Its Civil Engineering business is involved in the construction of civil engineering sectors such as roads, railways, dams and rivers, water and sewage, and energy facilities, as well as ports and airports, fishing harbors, coasts, and artificial islands. The Ground Improvement business specializes in ground development work. Its Block and Environment business consist of leasing products for wave-dissipating block and foot protection use.

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