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SPCmlip Co (XKRX:005610) Financial Strength : 5 (As of Mar. 2024)


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What is SPCmlip Co Financial Strength?

SPCmlip Co has the Financial Strength Rank of 5.

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.

SPCmlip Co's Interest Coverage for the quarter that ended in Mar. 2024 was 4.72. SPCmlip Co's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.14. As of today, SPCmlip Co's Altman Z-Score is 3.78.


Competitive Comparison of SPCmlip Co's Financial Strength

For the Packaged Foods subindustry, SPCmlip 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.


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

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

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



SPCmlip 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:

SPCmlip Co's Interest Expense for the months ended in Mar. 2024 was ₩-3,668 Mil. Its Operating Income for the months ended in Mar. 2024 was ₩17,311 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ₩177,852 Mil.

SPCmlip 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*17310.85/-3667.833
=4.72

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

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

SPCmlip 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
=(291803.793 + 177851.878) / 3322542.852
=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.

SPCmlip Co has a Z-score of 3.78, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.78 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.


SPCmlip Co  (XKRX:005610) 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.

SPCmlip Co has the Financial Strength Rank of 5.


SPCmlip Co Financial Strength Related Terms

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SPCmlip Co (XKRX:005610) Business Description

Traded in Other Exchanges
N/A
Address
2620, Nambusunhwan-ro, Yangjae-dong, Seocho-gu, Seoul, KOR
SPC Samlip Co Ltd is a player in the Korean food industry. It is engaged in operations such as bread making and food distribution. It also sells farm products such as eggs, food grains and processed meats and packaged foods. The company markets its products under names such as Samlip, SHANY and Table 8 and distributes them through franchised stores including Bizeun, TAPIAU and Le Pommier.

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