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Maruka Furusato (TSE:7128) Financial Strength : 8 (As of Dec. 2024)


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What is Maruka Furusato Financial Strength?

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

Good Sign:

Maruka Furusato Corp shows strong financial strength.

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.

Maruka Furusato did not have earnings to cover the interest expense. Maruka Furusato's debt to revenue ratio for the quarter that ended in Dec. 2024 was 0.01. As of today, Maruka Furusato's Altman Z-Score is 3.04.


Competitive Comparison of Maruka Furusato's Financial Strength

For the Industrial Distribution subindustry, Maruka Furusato'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.


Maruka Furusato's Financial Strength Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, Maruka Furusato's Financial Strength distribution charts can be found below:

* The bar in red indicates where Maruka Furusato's Financial Strength falls into.


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Maruka Furusato 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:

Maruka Furusato's Interest Expense for the months ended in Dec. 2024 was 円5 Mil. Its Operating Income for the months ended in Dec. 2024 was 円1,141 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was 円1,119 Mil.

Maruka Furusato's Interest Coverage for the quarter that ended in Dec. 2024 is

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

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

Maruka Furusato'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
=(609 + 1119) / 166992
=0.01

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.

Maruka Furusato has a Z-score of 3.04, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.04 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.


Maruka Furusato  (TSE:7128) 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.

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


Maruka Furusato Financial Strength Related Terms

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Maruka Furusato Business Description

Traded in Other Exchanges
N/A
Address
1-2-10, Minamishin-machi, Chuo-ku, Osaka, JPN, 540-0024
Website
Maruka Furusato Corp along with its subsidiaries is engaged in business of sales of machinery, sales of tools, sales of peripherals, rental of equipment and other related services.

Maruka Furusato Headlines

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