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Vinhomes JSC (STC:VHM) Financial Strength : 7 (As of Mar. 2025)


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What is Vinhomes JSC Financial Strength?

Vinhomes JSC has the Financial Strength Rank of 7.

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.

Vinhomes JSC's Interest Coverage for the quarter that ended in Mar. 2025 was 0.84. Vinhomes JSC's debt to revenue ratio for the quarter that ended in Mar. 2025 was 1.40. As of today, Vinhomes JSC's Altman Z-Score is 1.62.


Competitive Comparison of Vinhomes JSC's Financial Strength

For the Real Estate Services subindustry, Vinhomes JSC'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.


Vinhomes JSC's Financial Strength Distribution in the Real Estate Industry

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

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


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Vinhomes JSC 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:

Vinhomes JSC's Interest Expense for the months ended in Mar. 2025 was ₫-3,641,519 Mil. Its Operating Income for the months ended in Mar. 2025 was ₫3,053,210 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was ₫54,525,866 Mil.

Vinhomes JSC's Interest Coverage for the quarter that ended in Mar. 2025 is

Interest Coverage=-1*Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*3053210/-3641519
=0.84

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

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

Vinhomes JSC'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
=(33423836 + 54525866) / 62791668
=1.40

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.

Vinhomes JSC has a Z-score of 1.62, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.62 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.


Vinhomes JSC  (STC:VHM) 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.

Vinhomes JSC has the Financial Strength Rank of 7.


Vinhomes JSC Financial Strength Related Terms

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Vinhomes JSC Business Description

Traded in Other Exchanges
N/A
Address
Chu Huy Man Street, Vinhomes Riverside Area, Symphony Office Building, Phuc Loi Ward, Long Bien District, Hanoi, VNM
Vinhomes JSC is a real estate development company. The current principal activities of the Company are to develop real estate property for sale, provide leasing of offices, render real estate management and related services, provide general contractor services, consulting and designing construction services, supervision and construction management services. The company has following operating segments: Sales of inventory properties: include the transfer of properties being constructed for sale at the Company and its subsidiaries' real estate projects; Rendering consultancy and general construction contractor services: includes general contractor to investors; construction consultancy and supervision and related services; Other business activities.

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