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Senkon Logistics Co (TSE:9051) Financial Strength : 3 (As of Mar. 2024)


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What is Senkon Logistics Co Financial Strength?

Senkon Logistics Co has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Senkon Logistics Co Ltd displays poor financial strength. Usually, this is caused by too much debt for the company.

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.

Senkon Logistics Co's Interest Coverage for the quarter that ended in Mar. 2024 was 5.75. Senkon Logistics Co's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.46. As of today, Senkon Logistics Co's Altman Z-Score is 1.51.


Competitive Comparison of Senkon Logistics Co's Financial Strength

For the Integrated Freight & Logistics subindustry, Senkon Logistics 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.


Senkon Logistics Co's Financial Strength Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Senkon Logistics Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Senkon Logistics Co's Financial Strength falls into.



Senkon Logistics 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:

Senkon Logistics Co's Interest Expense for the months ended in Mar. 2024 was 円-16 Mil. Its Operating Income for the months ended in Mar. 2024 was 円90 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was 円4,774 Mil.

Senkon Logistics Co'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*90.39/-15.715
=5.75

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

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

Senkon Logistics Co'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
=(3886.589 + 4774.356) / 18964.048
=0.46

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.

Senkon Logistics Co has a Z-score of 1.51, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.51 is in distress zone. This implies bankruptcy possibility in the next two years.

* 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.


Senkon Logistics Co  (TSE:9051) 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.

Senkon Logistics Co has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Senkon Logistics Co Financial Strength Related Terms

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Senkon Logistics Co Business Description

Traded in Other Exchanges
N/A
Address
Central 4-chome, No. 10, No. 3, Aoba-ku, 3rd Floor, Miyagi ken Sendai Capital Tower, Sendai, JPN
Senkon Logistics Co Ltd is a Japan based company engaged in providing logistics services. It offers transportation services for precision equipment, vehicles, engineering equipment as well as industrial waste collection. The company is also engaged in the collection, sale and purchase of radioactive contaminant removal work and removal equipment. The other businesses in which the company is involved are real estate leasing business, import and export of agricultural and fishery products, Sales and rental of specified maintenance management medical equipment and advanced management medical equipment, and others.

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