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Life Intelligent Enterprise Holdings Co (TSE:5856) Financial Strength : 4 (As of Dec. 2023)


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What is Life Intelligent Enterprise Holdings Co Financial Strength?

Life Intelligent Enterprise Holdings Co has the Financial Strength Rank of 4.

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.

Life Intelligent Enterprise Holdings Co did not have earnings to cover the interest expense. Life Intelligent Enterprise Holdings Co's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.09. As of today, Life Intelligent Enterprise Holdings Co's Altman Z-Score is 3.30.


Competitive Comparison of Life Intelligent Enterprise Holdings Co's Financial Strength

For the Conglomerates subindustry, Life Intelligent Enterprise Holdings 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.


Life Intelligent Enterprise Holdings Co's Financial Strength Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Life Intelligent Enterprise Holdings Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Life Intelligent Enterprise Holdings Co's Financial Strength falls into.



Life Intelligent Enterprise Holdings 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:

Life Intelligent Enterprise Holdings Co's Interest Expense for the months ended in Dec. 2023 was 円-4 Mil. Its Operating Income for the months ended in Dec. 2023 was 円-225 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was 円702 Mil.

Life Intelligent Enterprise Holdings Co's Interest Coverage for the quarter that ended in Dec. 2023 is

Life Intelligent Enterprise Holdings 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.

Life Intelligent Enterprise Holdings Co'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
=(1202.431 + 701.67) / 20593.228
=0.09

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.

Life Intelligent Enterprise Holdings Co has a Z-score of 3.30, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.3 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.


Life Intelligent Enterprise Holdings Co  (TSE:5856) 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.

Life Intelligent Enterprise Holdings Co has the Financial Strength Rank of 4.


Life Intelligent Enterprise Holdings Co Financial Strength Related Terms

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Life Intelligent Enterprise Holdings Co (TSE:5856) Business Description

Traded in Other Exchanges
N/A
Address
36-11 Minamisuna 2-chome, Primm Tower Toyocho 4th Floor, Koto-ku, Tokyo, JPN, 63-0076
Life Intelligent Enterprise Holdings Co Ltd is a holding company engaged in diversified businesses. It is engaged in the retail and commercial wholesale of alcoholic beverages and food, manufacture and sale of liquor, educational books, production and sales of teaching materials, infant development software, production and sales of teaching materials, construction and sale of e-learning (Internet learning) system.

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