GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Alcoholic » Muhak Co Ltd (XKRX:033920) » Definitions » Financial Strength

Muhak Co (XKRX:033920) Financial Strength : 8 (As of Dec. 2024)


View and export this data going back to 1998. Start your Free Trial

What is Muhak Co Financial Strength?

Muhak Co has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Muhak Co Ltd 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.

Muhak Co's Interest Coverage for the quarter that ended in Dec. 2024 was 9.07. Muhak Co's debt to revenue ratio for the quarter that ended in Dec. 2024 was 0.29. As of today, Muhak Co's Altman Z-Score is 3.07.


Competitive Comparison of Muhak Co's Financial Strength

For the Beverages - Wineries & Distilleries subindustry, Muhak 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.


Muhak Co's Financial Strength Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Muhak Co's Financial Strength distribution charts can be found below:

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


;
;

Muhak 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:

Muhak Co's Interest Expense for the months ended in Dec. 2024 was ₩-461 Mil. Its Operating Income for the months ended in Dec. 2024 was ₩4,178 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was ₩1,254 Mil.

Muhak Co'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*4178.263/-460.647
=9.07

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

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

Muhak Co'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
=(42176.235 + 1253.844) / 148509.864
=0.29

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.

Muhak Co has a Z-score of 3.07, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.07 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.


Muhak Co  (XKRX:033920) 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.

Muhak Co has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.


Muhak Co Financial Strength Related Terms

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


Muhak Co Business Description

Traded in Other Exchanges
N/A
Address
469-6, Bongam-Dong, Masanhoewon-Gu, Changwon-si, Gyeongsangnam-do, KOR, 630-804
Muhak Co Ltd is a Korea-based liquor manufacturing company. It operates in two segments namely liquor and Steel. The liquor segment manufactures and sells diluted soju and other alcoholic beverages. Its Steel segment is involved in the production and marketing of electrical steel sheets, stainless steel, and cold-rolled steel sheets. The company mainly produces diluted soju, fruit wine, yakju, and liqueur and other related beverages. It markets its products geographically across countries like Busan, Kyungnam, and Ulsan.

Muhak Co Headlines

No Headlines