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Sajo Industries Co (XKRX:007160) Financial Strength : 4 (As of Mar. 2024)


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What is Sajo Industries Co Financial Strength?

Sajo Industries Co has the Financial Strength Rank of 4.

Warning Sign:

Sajo Industries Co Ltd 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.

Sajo Industries Co's Interest Coverage for the quarter that ended in Mar. 2024 was 7.39. Sajo Industries Co's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.00. As of today, Sajo Industries Co's Altman Z-Score is 0.68.


Competitive Comparison of Sajo Industries Co's Financial Strength

For the Packaged Foods subindustry, Sajo Industries 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.


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

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

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



Sajo Industries 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:

Sajo Industries Co's Interest Expense for the months ended in Mar. 2024 was ₩-1,430 Mil. Its Operating Income for the months ended in Mar. 2024 was ₩10,568 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ₩0 Mil.

Sajo Industries 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*10567.525/-1430.17
=7.39

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

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

Sajo Industries 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
=(0 + 0) / 578820.024
=0.00

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.

Sajo Industries Co has a Z-score of 0.68, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.68 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.


Sajo Industries Co  (XKRX:007160) 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.

Sajo Industries Co has the Financial Strength Rank of 4.


Sajo Industries Co Financial Strength Related Terms

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Sajo Industries Co (XKRX:007160) Business Description

Traded in Other Exchanges
N/A
Address
Saja Building 157 Chungjeong-ro-2-ga, Seodoemum-gu, Seoul, KOR, 120-707
Sajo Industries Co Ltd engages in fishery business and seafood products. It is involved in deep-sea fishing, including long line/purse seine tuna fishing, pollack trawling, and squid jigging, as well as butchery, meatpacking, food processing and wholesale and retail businesses.

Sajo Industries Co (XKRX:007160) Headlines

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