What is Turners Automotive Group Financial Strength?
Turners Automotive Group 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:
Turners Automotive Group 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.
Turners Automotive Group did not have earnings to cover the interest expense.
Turners Automotive Group's debt to revenue ratio for the quarter that ended in Sep. 2023 was 1.66.
As of today, Turners Automotive Group's Altman Z-Score is 1.29.
Competitive Comparison of Turners Automotive Group's Financial Strength
For the Auto & Truck Dealerships subindustry, Turners Automotive Group'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.
Turners Automotive Group's Financial Strength Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Turners Automotive Group's Financial Strength distribution charts can be found below:
* The bar in red indicates where Turners Automotive Group's Financial Strength falls into.
Turners Automotive Group 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:
Turners Automotive Group's Interest Expense for the
months ended in Sep. 2023 was A$-12.4 Mil. Its Operating Income for the
months ended in Sep. 2023 was A$-36.0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was A$0.0 Mil.
Turners Automotive Group's Interest Coverage for the quarter that ended in Sep. 2023 is
| Turners Automotive Group did not have earnings to cover the 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. Turners Automotive Group Ltd interest coverage is 2.49, which is low.
2. Debt to revenue ratio. The lower, the better.
Turners Automotive Group's Debt to Revenue Ratio for the quarter that ended in Sep. 2023 is
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.
Turners Automotive Group has a Z-score of 1.29, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 1.29 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.
Turners Automotive Group (ASX:TRA) Business Description
Traded in Other Exchanges
Address
Level 5, 70 Shortland Street, PO Box 1232, Auckland, NZL, 1140
Turners Automotive Group Ltd is an integrated financial services group, primarily operating in the automotive sector. Business activity generally functions through Automotive Retail, Finance, Insurance, Credit management, Corporate, and Others. The company derives the majority of its revenue from Automotive retail which is engaged in remarketing (motor vehicles, trucks, heavy machinery, and commercial goods) and purchasing goods for sale and related asset-based finance to consumers. Geographically the group's business activities are located in New Zealand and Australia.
Turners Automotive Group (ASX:TRA) Headlines
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