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Inbound Platform (TSE:5587) Financial Strength : 8 (As of Mar. 2024)


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What is Inbound Platform Financial Strength?

Inbound Platform has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Inbound Platform Corp 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.

Inbound Platform's Interest Coverage for the quarter that ended in Mar. 2024 was 88.60. Inbound Platform's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.11. As of today, Inbound Platform's Altman Z-Score is 5.25.


Competitive Comparison of Inbound Platform's Financial Strength

For the Specialty Business Services subindustry, Inbound Platform'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.


Inbound Platform's Financial Strength Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Inbound Platform's Financial Strength distribution charts can be found below:

* The bar in red indicates where Inbound Platform's Financial Strength falls into.



Inbound Platform 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:

Inbound Platform's Interest Expense for the months ended in Mar. 2024 was 円-1 Mil. Its Operating Income for the months ended in Mar. 2024 was 円64 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was 円174 Mil.

Inbound Platform's Interest Coverage for the quarter that ended in Mar. 2024 is

Interest Coverage=-1*Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*64.414/-0.727
=88.60

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. Inbound Platform Corp has enough cash to cover all of its debt. Its financial situation is stable.

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

Inbound Platform'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
=(61.91 + 174.05) / 2194.6
=0.11

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.

Inbound Platform has a Z-score of 5.25, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 5.25 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.


Inbound Platform  (TSE:5587) 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.

Inbound Platform has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.


Inbound Platform Financial Strength Related Terms

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Inbound Platform (TSE:5587) Business Description

Traded in Other Exchanges
N/A
Address
6-14-5 Shimbashi, 4th floor, SW Shimbashi Building, Minato-ku, Tokyo, JPN, 105-0004
Inbound Platform Corp is engaged in providing Pocket Wi-Fi, RV rental, foreign currency exchange services, and online travel information so foreign visitors can enjoy Japan even more. Its business operations primarily cater to foreign visitors in Japan.

Inbound Platform (TSE:5587) Headlines

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