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Anglo-Eastern Plantations (LSE:AEP) Financial Strength

: 10 (As of Jun. 2023)
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Anglo-Eastern Plantations has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Anglo-Eastern Plantations PLC shows strong financial strength.

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.

Anglo-Eastern Plantations's Interest Coverage for the quarter that ended in Jun. 2023 was 1,915.33. Anglo-Eastern Plantations's debt to revenue ratio for the quarter that ended in Jun. 2023 was 0.00. As of today, Anglo-Eastern Plantations's Altman Z-Score is 7.24.


Competitive Comparison

For the Farm Products subindustry, Anglo-Eastern Plantations'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.


Anglo-Eastern Plantations Financial Strength Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, Anglo-Eastern Plantations's Financial Strength distribution charts can be found below:

* The bar in red indicates where Anglo-Eastern Plantations's Financial Strength falls into.



Anglo-Eastern Plantations 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:

Anglo-Eastern Plantations's Interest Expense for the months ended in Jun. 2023 was £-0.0 Mil. Its Operating Income for the months ended in Jun. 2023 was £23.0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2023 was £0.2 Mil.

Anglo-Eastern Plantations's Interest Coverage for the quarter that ended in Jun. 2023 is

Interest Coverage=-1*Operating Income (Q: Jun. 2023 )/Interest Expense (Q: Jun. 2023 )
=-1*22.984/-0.012
=1,915.33

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

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Anglo-Eastern Plantations PLC has enough cash to cover all of its debt. Its financial situation is stable.

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

Anglo-Eastern Plantations's Debt to Revenue Ratio for the quarter that ended in Jun. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0.098 + 0.246) / 274.744
=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.

Anglo-Eastern Plantations has a Z-score of 7.24, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 7.24 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.


Anglo-Eastern Plantations  (LSE:AEP) 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.

Anglo-Eastern Plantations has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.


Anglo-Eastern Plantations Financial Strength Related Terms

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Anglo-Eastern Plantations (LSE:AEP) Business Description

Traded in Other Exchanges
Address
Quadrant House, 4 Thomas More Square, 6th Floor, London, GBR, E1W 1YW
Anglo-Eastern Plantations PLC is engaged in the production and processing of palm oil and rubber. The company's segments include CPO (Crude Palm Oil), palm kernel and FFB (Fresh Fruit Bunches), Rubber, Shell nut, Biomass products, Biogas products, and others. The majority of the revenue is generated from the CPO, palm kernel, and FFB segment. The company's geographical segments include Indonesia and Malaysia, out of which Indonesia is further classified in North Sumatera, Bengkulu, South Sumatera, Riau, Bangka, Kalimantan. The majority of the revenue is generated from Indonesia.