GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Eastern Bank PLC (DHA:EBL) » Definitions » Financial Strength

Eastern Bank (DHA:EBL) Financial Strength : 6 (As of Mar. 2025)


View and export this data going back to 1993. Start your Free Trial

What is Eastern Bank Financial Strength?

Eastern Bank 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.

GuruFocus does not calculate Eastern Bank's interest coverage with the available data. Eastern Bank's debt to revenue ratio for the quarter that ended in Mar. 2025 was 3.39. Altman Z-Score does not apply to banks and insurance companies.


Eastern Bank 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:

Eastern Bank's Interest Expense for the months ended in Mar. 2025 was BDT-9,224 Mil. Its Operating Income for the months ended in Mar. 2025 was BDT0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was BDT104,482 Mil.

Eastern Bank's Interest Coverage for the quarter that ended in Mar. 2025 is

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

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

Eastern Bank's Debt to Revenue Ratio for the quarter that ended in Mar. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 104482.045) / 30860.728
=3.39

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.

Altman Z-Score does not apply to banks and insurance companies.

* 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.


Eastern Bank  (DHA:EBL) 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.

Eastern Bank has the Financial Strength Rank of 6.


Eastern Bank Financial Strength Related Terms

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


Eastern Bank Business Description

Traded in Other Exchanges
N/A
Address
100 Gulshan Avenue, Dhaka, BGD, 1212
Eastern Bank PLC is a commercial bank. It provides a full range of banking services such as retail loan products, business loans, LC trade, and deposits, through its Branches, ATMs, and Internet Banking Channels. The reportable segments of the group are DBO (Domestic Banking Operation), OBO (Offshore Banking Operation), IB (Islamic Banking), EBL Securities Limited (EBLSL), EBL Investments Limited (EBLIL), EBL Finance (HK) Limited, and EBL Asset Management Limited (EBLAML). Maximum revenue is generated from its Domestic Banking Operation (DBO) segment, which deals with the full range of commercial banking products and services offered by three different business units: Corporate, Retail and SME Banking, and Treasury.