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Silver Life Co (TSE:9262) Financial Strength : 7 (As of Jan. 2024)


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What is Silver Life Co Financial Strength?

Silver Life 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.

Silver Life Co's Interest Coverage for the quarter that ended in Jan. 2024 was 235.71. Silver Life Co's debt to revenue ratio for the quarter that ended in Jan. 2024 was 0.14. As of today, Silver Life Co's Altman Z-Score is 4.42.


Competitive Comparison of Silver Life Co's Financial Strength

For the Packaged Foods subindustry, Silver Life 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.


Silver Life Co's Financial Strength Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Silver Life Co's Financial Strength distribution charts can be found below:

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



Silver Life 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:

Silver Life Co's Interest Expense for the months ended in Jan. 2024 was 円-1 Mil. Its Operating Income for the months ended in Jan. 2024 was 円245 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2024 was 円1,594 Mil.

Silver Life Co's Interest Coverage for the quarter that ended in Jan. 2024 is

Interest Coverage=-1*Operating Income (Q: Jan. 2024 )/Interest Expense (Q: Jan. 2024 )
=-1*245.137/-1.04
=235.71

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

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

Silver Life Co's Debt to Revenue Ratio for the quarter that ended in Jan. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Jan. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(240.12 + 1594.031) / 13416.98
=0.14

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.

Silver Life Co has a Z-score of 4.42, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.42 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.


Silver Life Co  (TSE:9262) 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.

Silver Life Co has the Financial Strength Rank of 7.


Silver Life Co Financial Strength Related Terms

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Silver Life Co (TSE:9262) Business Description

Traded in Other Exchanges
N/A
Address
4-32-4 Nishi-Shinjuku, Highness Lofty 2nd floor, Shinjuku-ku, Tokyo, JPN, 160-0023
Silver Life Co Ltd is a Japan-based company mainly engaged in the operation of franchise headquarters of delivery service for elderly people and sales of cooked ingredients to franchisees. The company operates through Food Manufacturing and Sales business. The company's seller has the franchise (FC) merchant stores, senior citizens facilities and others. FC merchant stores business is engaged in developing franchising food delivery stores with two brands: Magokoro-Bento and H-fureai. The Company also engages in the provision of management guidance to franchisees and sales of boxed lunch ingredients.

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