What is Electra Consumer Products Financial Strength?
Electra Consumer Products has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Electra Consumer Products 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.
Electra Consumer Products's Interest Coverage for the quarter that ended in Mar. 2024 was 1.21.
Electra Consumer Products's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.56.
As of today, Electra Consumer Products's Altman Z-Score is 0.94.
Competitive Comparison of Electra Consumer Products's Financial Strength
For the Consumer Electronics subindustry, Electra Consumer Products'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.
Electra Consumer Products's Financial Strength Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Electra Consumer Products's Financial Strength distribution charts can be found below:
* The bar in red indicates where Electra Consumer Products's Financial Strength falls into.
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:
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Electra Consumer Products Ltds earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.
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.
Electra Consumer Products has a Z-score of 0.94, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 0.94 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.
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.
Electra Consumer Products has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Electra Consumer Products Financial Strength Related Terms
Thank you for viewing the detailed overview of Electra Consumer Products's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
Electra Consumer Products (XTAE:ECP) Business Description
Electra Consumer Products Ltd engages in the field of household electrical appliances, air conditioning, and communications. The group operates in three fields of operations of which the First field is importing, manufacturing, exporting, marketing, sale, and distribution of electrical consumer products as well as the provision of services for products; the Second field consists of the operation of retail marketing chains for the sale of electrical consumer products in Israel and the Third field includes the operation of "Do It Yourself" chains - retail chains specializing in the provision of home design and maintenance solutions and in the field of products for motor vehicles field. Geographically, the firm is Israel based and it derives revenue from sales and the provision of services.
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