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Sarawak Plantation Bhd (XKLS:5135) Financial Strength : 9 (As of Dec. 2024)


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What is Sarawak Plantation Bhd Financial Strength?

Sarawak Plantation Bhd has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Sarawak Plantation Bhd shows strong financial strength.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and 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.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Sarawak Plantation Bhd's Interest Coverage for the quarter that ended in Dec. 2024 was 242.18. Sarawak Plantation Bhd's debt to revenue ratio for the quarter that ended in Dec. 2024 was 0.07. As of today, Sarawak Plantation Bhd's Altman Z-Score is 3.44.


Competitive Comparison of Sarawak Plantation Bhd's Financial Strength

For the Farm Products subindustry, Sarawak Plantation 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.


Sarawak Plantation Bhd's Financial Strength Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Sarawak Plantation Bhd's Financial Strength distribution charts can be found below:

* The bar in red indicates where Sarawak Plantation Bhd's Financial Strength falls into.


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Sarawak Plantation 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.

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:

Sarawak Plantation Bhd's Interest Expense for the months ended in Dec. 2024 was RM-0.1 Mil. Its Operating Income for the months ended in Dec. 2024 was RM31.0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was RM40.3 Mil.

Sarawak Plantation Bhd's Interest Coverage for the quarter that ended in Dec. 2024 is

Interest Coverage=-1*Operating Income (Q: Dec. 2024 )/Interest Expense (Q: Dec. 2024 )
=-1*30.999/-0.128
=242.18

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. Sarawak Plantation Bhd has enough cash to cover all of its debt. Its financial situation is stable.

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

Sarawak Plantation Bhd's Debt to Revenue Ratio for the quarter that ended in Dec. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(2.719 + 40.333) / 574.36
=0.07

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.

Sarawak Plantation Bhd has a Z-score of 3.44, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.44 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.


Sarawak Plantation Bhd  (XKLS:5135) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Sarawak Plantation Bhd has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.


Sarawak Plantation Bhd Financial Strength Related Terms

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


Sarawak Plantation Bhd Business Description

Traded in Other Exchanges
N/A
Address
Jalan Permaisuri, Lot 1174, Block 9, Wisma SPB, MCLD Miri Waterfront, Miri, SWK, MYS, 98000
Sarawak Plantation Bhd is an investment holding company. Along with its subsidiaries, it is engaged in the cultivation of oil palm and processing of fresh fruit bunches of oil palm into crude palm oil and palm kernel. Other businesses include the provision of management, marketing, agronomic, and consultancy services, and property investment. The company has three reportable segments: Investment holding, Oil palm operations, and Management services and rental. It generates a majority of its revenue from Oil palm operations.

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