What is Tan Chong Motor Holdings Bhd Financial Strength?
Tan Chong Motor Holdings Bhd has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Tan Chong Motor Holdings Bhd 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.
Tan Chong Motor Holdings Bhd did not have earnings to cover the interest expense.
Tan Chong Motor Holdings Bhd's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.71.
As of today, Tan Chong Motor Holdings Bhd's Altman Z-Score is 1.11.
Competitive Comparison of Tan Chong Motor Holdings Bhd's Financial Strength
For the Auto Manufacturers subindustry, Tan Chong Motor Holdings Bhd'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.
Tan Chong Motor Holdings Bhd's Financial Strength Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Tan Chong Motor Holdings Bhd's Financial Strength distribution charts can be found below:
* The bar in red indicates where Tan Chong Motor Holdings Bhd's Financial Strength falls into.
Tan Chong Motor Holdings Bhd 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.
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:
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.
Tan Chong Motor Holdings Bhd has a Z-score of 1.11, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 1.11 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.
Tan Chong Motor Holdings Bhd (XKLS:4405) 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.
Tan Chong Motor Holdings Bhd has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Tan Chong Motor Holdings Bhd Financial Strength Related Terms
Thank you for viewing the detailed overview of Tan Chong Motor Holdings Bhd's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
Tan Chong Motor Holdings Bhd (XKLS:4405) Business Description
Tan Chong Motor Holdings Bhd is primarily an automotive manufacturer based in Malaysia. The company conducts its businesses through three segments, namely, Vehicles assembly, manufacturing, distribution and after-sales services segment, Financial Services, and others. The Vehicles assembly, manufacturing, distribution and after-sales services segment is its core business and is a majority revenue generator. It is focused on the assembly and distribution of passenger and commercial vehicles, automotive workshop services, distribution of automotive spare parts and manufacturing of automotive parts. The Financial Services segment provides hire purchase financing, personal loans and insurance agency services and other operations segment is engaged in property and investment holding activities.
Tan Chong Motor Holdings Bhd (XKLS:4405) Headlines
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