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Leju Holdings (Leju Holdings) Financial Strength : 5 (As of Jun. 2023)


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What is Leju Holdings Financial Strength?

Leju Holdings has the Financial Strength Rank of 5.

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.

GuruFocus does not calculate Leju Holdings's interest coverage with the available data. Leju Holdings's debt to revenue ratio for the quarter that ended in Jun. 2023 was 0.04. As of today, Leju Holdings's Altman Z-Score is -4.74.


Competitive Comparison of Leju Holdings's Financial Strength

For the Real Estate Services subindustry, Leju Holdings'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.


Leju Holdings's Financial Strength Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Leju Holdings's Financial Strength distribution charts can be found below:

* The bar in red indicates where Leju Holdings's Financial Strength falls into.



Leju Holdings 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:

Leju Holdings'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 $-23.5 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2023 was $9.2 Mil.

Leju Holdings's Interest Coverage for the quarter that ended in Jun. 2023 is

GuruFocus does not calculate Leju Holdings's interest coverage with the available data.

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. Leju Holdings Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

Leju Holdings'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
=(2.833 + 9.188) / 317.064
=0.04

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.

Leju Holdings has a Z-score of -4.74, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of -4.74 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.


Leju Holdings  (OTCPK:LEJUY) 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.

Leju Holdings has the Financial Strength Rank of 5.


Leju Holdings Financial Strength Related Terms

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


Leju Holdings (Leju Holdings) Business Description

Traded in Other Exchanges
N/A
Address
No.8 Dongfeng South Road, Level G, Building G, Chaoyang District, Beijing, CHN, 100016
Leju Holdings Ltd is an online real estate services provider. The company, through its subsidiaries and consolidated variable interest entities, is principally engaged in providing online advertising, e-commerce services, and listing services in the People's Republic of China. The company integrates its online platform with offline services to facilitate residential property transactions and home renovation transactions. It also operates various real estate and home furnishing Websites of SINA. A majority of its revenues are concentrated in China's major urban centers, including Beijing, Hainan, Guangzhou, and Ningbo.

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