GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Homebuilding & Construction » Studentbostader i Norden AB (OSTO:STUDBO) » Definitions » Financial Strength

Studentbostader i Norden AB (OSTO:STUDBO) Financial Strength

: 2 (As of Dec. 2023)
View and export this data going back to 2015. Start your Free Trial

Studentbostader i Norden AB has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Studentbostader i Norden AB 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.

Studentbostader i Norden AB's Interest Coverage for the quarter that ended in Dec. 2023 was 1.39. Studentbostader i Norden AB's debt to revenue ratio for the quarter that ended in Dec. 2023 was 12.76. As of today, Studentbostader i Norden AB's Altman Z-Score is -0.40.


Competitive Comparison

For the Residential Construction subindustry, Studentbostader i Norden AB'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.


Studentbostader i Norden AB Financial Strength Distribution

For the Homebuilding & Construction industry and Consumer Cyclical sector, Studentbostader i Norden AB's Financial Strength distribution charts can be found below:

* The bar in red indicates where Studentbostader i Norden AB's Financial Strength falls into.



Studentbostader i Norden AB 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:

Studentbostader i Norden AB's Interest Expense for the months ended in Dec. 2023 was kr-43.3 Mil. Its Operating Income for the months ended in Dec. 2023 was kr60.4 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was kr3,179.8 Mil.

Studentbostader i Norden AB's Interest Coverage for the quarter that ended in Dec. 2023 is

Interest Coverage=-1*Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*60.399/-43.306
=1.39

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. Studentbostader i Norden AB interest coverage is 1.23, which is low.

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

Studentbostader i Norden AB's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(2324.259 + 3179.755) / 431.444
=12.76

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.

Studentbostader i Norden AB has a Z-score of -0.40, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of -0.4 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.


Studentbostader i Norden AB  (OSTO:STUDBO) 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.

Studentbostader i Norden AB has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Studentbostader i Norden AB Financial Strength Related Terms

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


Studentbostader i Norden AB (OSTO:STUDBO) Business Description

Traded in Other Exchanges
N/A
Address
Kungsgatan 47A, Uppsala, SWE, 753 21
Studentbostader i Norden AB owns, manages, and develops student housing facilities in the Nordic region. The company offers affordable housing options and a completely digitized rental management system.

Studentbostader i Norden AB (OSTO:STUDBO) Headlines

No Headlines