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Two stone & Sons (TSE:7352) Financial Strength : 5 (As of Feb. 2024)


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What is Two stone & Sons Financial Strength?

Two stone & Sons has the Financial Strength Rank of 5.

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.

Two stone & Sons's Interest Coverage for the quarter that ended in Feb. 2024 was 2.68. Two stone & Sons's debt to revenue ratio for the quarter that ended in Feb. 2024 was 0.17. As of today, Two stone & Sons's Altman Z-Score is 11.90.


Competitive Comparison of Two stone & Sons's Financial Strength

For the Specialty Business Services subindustry, Two stone & Sons'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.


Two stone & Sons's Financial Strength Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Two stone & Sons's Financial Strength distribution charts can be found below:

* The bar in red indicates where Two stone & Sons's Financial Strength falls into.



Two stone & Sons 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:

Two stone & Sons's Interest Expense for the months ended in Feb. 2024 was 円-3 Mil. Its Operating Income for the months ended in Feb. 2024 was 円8 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Feb. 2024 was 円1,666 Mil.

Two stone & Sons's Interest Coverage for the quarter that ended in Feb. 2024 is

Interest Coverage=-1*Operating Income (Q: Feb. 2024 )/Interest Expense (Q: Feb. 2024 )
=-1*7.915/-2.948
=2.68

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

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

Two stone & Sons's Debt to Revenue Ratio for the quarter that ended in Feb. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Feb. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(576.052 + 1665.815) / 13085.328
=0.17

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.

Two stone & Sons has a Z-score of 11.90, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 11.9 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.


Two stone & Sons  (TSE:7352) 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.

Two stone & Sons has the Financial Strength Rank of 5.


Two stone & Sons Financial Strength Related Terms

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Two stone & Sons (TSE:7352) Business Description

Traded in Other Exchanges
N/A
Address
2-22-3 Shibuya, Shibuya East Exit Building 6F, Shibuya-ku, Tokyo, JPN, 150-0002
Two Stone & Sons Inc is an engineering company providing engineering resources to companies, media businesses, and programming school businesses. The company develops services such as in-house media management and client solutions such as contract development.

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