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Vicom (SGX:WJP) Financial Strength

: 8 (As of Dec. 2023)
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Vicom has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Vicom Ltd 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.

Vicom's Interest Coverage for the quarter that ended in Dec. 2023 was 35.10. Vicom's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.29. As of today, Vicom's Altman Z-Score is 6.58.


Competitive Comparison

For the Auto & Truck Dealerships subindustry, Vicom'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.


Vicom Financial Strength Distribution

For the Vehicles & Parts industry and Consumer Cyclical sector, Vicom's Financial Strength distribution charts can be found below:

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



Vicom 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:

Vicom's Interest Expense for the months ended in Dec. 2023 was S$-0.4 Mil. Its Operating Income for the months ended in Dec. 2023 was S$15.4 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was S$30.0 Mil.

Vicom'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*15.373/-0.438
=35.10

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

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

Vicom'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
=(1.444 + 29.977) / 109.846
=0.29

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.

Vicom has a Z-score of 6.58, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 6.58 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.


Vicom  (SGX:WJP) 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.

Vicom has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.


Vicom Financial Strength Related Terms

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


Vicom (SGX:WJP) Business Description

Traded in Other Exchanges
N/A
Address
385 Sin Ming Drive, Singapore, SGP, 575718
Vicom Ltd is an investment holding company engaged in the provision of motor vehicle evaluation and other related services. It provides technical testing and inspection services to mechanical, biochemical, civil engineering and non-destructive testing fields. Its services include vehicle inspection, assessment, evaluation, and emission test laboratory, motor insurance, road tax renewal, car evaluation, vehicle inspection, type approval, in-vehicle unit service, speed limiter check, chassis dynamometer smoke test, tinted glass check, car buying tips, and maintenance, consultancy and business opportunities. The company mainly operates in Singapore and derives prime revenue from inspection and testing services.

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