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Emimen Co (TSE:9237) Financial Strength : 7 (As of Apr. 2024)


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What is Emimen Co Financial Strength?

Emimen Co has the Financial Strength Rank of 7.

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.

Emimen Co's Interest Coverage for the quarter that ended in Apr. 2024 was 131.72. Emimen Co's debt to revenue ratio for the quarter that ended in Apr. 2024 was 0.10. As of today, Emimen Co's Altman Z-Score is 8.51.


Competitive Comparison of Emimen Co's Financial Strength

For the Consulting Services subindustry, Emimen 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.


Emimen Co's Financial Strength Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Emimen Co's Financial Strength distribution charts can be found below:

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



Emimen 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:

Emimen Co's Interest Expense for the months ended in Apr. 2024 was 円-0.4 Mil. Its Operating Income for the months ended in Apr. 2024 was 円55.3 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Apr. 2024 was 円103.6 Mil.

Emimen Co's Interest Coverage for the quarter that ended in Apr. 2024 is

Interest Coverage=-1*Operating Income (Q: Apr. 2024 )/Interest Expense (Q: Apr. 2024 )
=-1*55.323/-0.42
=131.72

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. Emimen Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

Emimen Co's Debt to Revenue Ratio for the quarter that ended in Apr. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Apr. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(25.284 + 103.589) / 1251.308
=0.10

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.

Emimen Co has a Z-score of 8.51, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 8.51 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.


Emimen Co  (TSE:9237) 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.

Emimen Co has the Financial Strength Rank of 7.


Emimen Co Financial Strength Related Terms

Thank you for viewing the detailed overview of Emimen Co's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Emimen Co Business Description

Traded in Other Exchanges
N/A
Address
1-8-33 Kyomachibori, 4th Floor Kyomachibori Square, Nishi-ku, Osaka, JPN, 550-0003
Emimen Co Ltd is engaged in the business of senior home introduction services and senior home management consulting. It is a professional in selecting senior homes, providing paid nursing homes with nursing care, residential-type paid nursing homes, and elderly care homes with services, depending on the thoughts and circumstances of the caregiving family. It helps to find a suitable place to live from among a wide variety of options, including residential housing and group homes.

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