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Gupta Synthetics (BOM:514116) Financial Strength : 0 (As of Dec. 2017)


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What is Gupta Synthetics Financial Strength?

Gupta Synthetics has the Financial Strength Rank of 0.

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.

Gupta Synthetics did not have earnings to cover the interest expense. Gupta Synthetics's debt to revenue ratio for the quarter that ended in Dec. 2017 was 0.00. As of today, Gupta Synthetics's Altman Z-Score is 0.00.


Competitive Comparison of Gupta Synthetics's Financial Strength

For the Textile Manufacturing subindustry, Gupta Synthetics'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.


Gupta Synthetics's Financial Strength Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Gupta Synthetics's Financial Strength distribution charts can be found below:

* The bar in red indicates where Gupta Synthetics's Financial Strength falls into.



Gupta Synthetics 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:

Gupta Synthetics's Interest Expense for the months ended in Dec. 2017 was ₹-1 Mil. Its Operating Income for the months ended in Dec. 2017 was ₹-3 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2017 was ₹0 Mil.

Gupta Synthetics's Interest Coverage for the quarter that ended in Dec. 2017 is

Gupta Synthetics did not have earnings to cover the interest expense.

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

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

Gupta Synthetics's Debt to Revenue Ratio for the quarter that ended in Dec. 2017 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2017 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 0) / 1269.324
=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.

Gupta Synthetics has a Z-score of 0.00, indicating it is in Distress Zones. This implies bankrupcy 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.


Gupta Synthetics  (BOM:514116) 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.

Gupta Synthetics has the Financial Strength Rank of 0.


Gupta Synthetics Financial Strength Related Terms

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Gupta Synthetics (BOM:514116) Business Description

Traded in Other Exchanges
N/A
Address
101, Trividh Chambers, Opposite Fire Brigade Station, Surat, Gujrat, IND, 395 002
Gupta Synthetics Ltd is a textile manufacturing company. Principally, it is engaged in the business of texturing, draw twisting, twisting, and dyeing of yarn. The company's product consists of Polyester filament yarn, DTY yarn, Dyed yarn, Metalic yarn, Colour yarn, FDY yarn and Nylon yarn and many more.

Gupta Synthetics (BOM:514116) Headlines

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