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PC Direct (XKRX:051380) Financial Strength : 6 (As of Dec. 2024)


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What is PC Direct Financial Strength?

PC Direct has the Financial Strength Rank of 6.

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.

PC Direct's Interest Coverage for the quarter that ended in Dec. 2024 was 3.64. PC Direct's debt to revenue ratio for the quarter that ended in Dec. 2024 was 0.11. As of today, PC Direct's Altman Z-Score is 5.02.


Competitive Comparison of PC Direct's Financial Strength

For the Electronics & Computer Distribution subindustry, PC Direct'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.


PC Direct's Financial Strength Distribution in the Hardware Industry

For the Hardware industry and Technology sector, PC Direct's Financial Strength distribution charts can be found below:

* The bar in red indicates where PC Direct's Financial Strength falls into.


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PC Direct 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:

PC Direct's Interest Expense for the months ended in Dec. 2024 was ₩-567 Mil. Its Operating Income for the months ended in Dec. 2024 was ₩2,065 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was ₩3,482 Mil.

PC Direct'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*2065.257/-566.932
=3.64

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

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

PC Direct'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
=(35887.787 + 3482.375) / 356894.048
=0.11

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.

PC Direct has a Z-score of 5.02, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 5.02 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.


PC Direct  (XKRX:051380) 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.

PC Direct has the Financial Strength Rank of 6.


PC Direct Financial Strength Related Terms

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PC Direct Business Description

Traded in Other Exchanges
N/A
Address
6th KuenKil Tower, 677-25 Yeoksam-dong, Gangnam-gu, Seoul, KOR, 135-080
PC Direct Inc is a South Korean company operates in computer division industry. The services offered by the company include sales of core IT components, introduction of new products, solution business, product promotion, and product information.

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