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Founder's Consultants Holdings (TSE:6542) Financial Strength : 9 (As of Jun. 2024)


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What is Founder's Consultants Holdings Financial Strength?

Founder's Consultants Holdings has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Founder's Consultants Holdings Inc 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.

Founder's Consultants Holdings's Interest Coverage for the quarter that ended in Jun. 2024 was 162.28. Founder's Consultants Holdings's debt to revenue ratio for the quarter that ended in Jun. 2024 was 0.02. As of today, Founder's Consultants Holdings's Altman Z-Score is 4.61.


Competitive Comparison of Founder's Consultants Holdings's Financial Strength

For the Engineering & Construction subindustry, Founder's Consultants Holdings'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.


Founder's Consultants Holdings's Financial Strength Distribution in the Construction Industry

For the Construction industry and Industrials sector, Founder's Consultants Holdings's Financial Strength distribution charts can be found below:

* The bar in red indicates where Founder's Consultants Holdings's Financial Strength falls into.



Founder's Consultants Holdings 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:

Founder's Consultants Holdings's Interest Expense for the months ended in Jun. 2024 was 円-2 Mil. Its Operating Income for the months ended in Jun. 2024 was 円358 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2024 was 円161 Mil.

Founder's Consultants Holdings's Interest Coverage for the quarter that ended in Jun. 2024 is

Interest Coverage=-1*Operating Income (Q: Jun. 2024 )/Interest Expense (Q: Jun. 2024 )
=-1*357.988/-2.206
=162.28

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. Founder's Consultants Holdings Inc has enough cash to cover all of its debt. Its financial situation is stable.

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

Founder's Consultants Holdings's Debt to Revenue Ratio for the quarter that ended in Jun. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(4.963 + 161.08) / 8579.12
=0.02

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.

Founder's Consultants Holdings has a Z-score of 4.61, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.61 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.


Founder's Consultants Holdings  (TSE:6542) 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.

Founder's Consultants Holdings has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.


Founder's Consultants Holdings Financial Strength Related Terms

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Founder's Consultants Holdings Business Description

Traded in Other Exchanges
N/A
Address
3 - chome No. 6 18, Hakata-ku Hakata-eki, Fukuoka Prefecture, Fukuoka, JPN, 812-0013
Founder's Consultants Holdings Inc is a construction consultant providing survey for roads, bridges, and railways, among others. It also provides planning, designing, maintenance and construction management services. Geographically the business activities are carried out through Japan.

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