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Saizeriya Co (TSE:7581) Financial Strength : 7 (As of Feb. 2024)


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What is Saizeriya Co Financial Strength?

Saizeriya Co has the Financial Strength Rank of 7.

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.

Saizeriya Co's Interest Coverage for the quarter that ended in Feb. 2024 was 17.56. Saizeriya Co's debt to revenue ratio for the quarter that ended in Feb. 2024 was 0.13. As of today, Saizeriya Co's Altman Z-Score is 5.40.


Competitive Comparison of Saizeriya Co's Financial Strength

For the Restaurants subindustry, Saizeriya Co'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.


Saizeriya Co's Financial Strength Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Saizeriya Co's Financial Strength distribution charts can be found below:

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



Saizeriya Co 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:

Saizeriya Co's Interest Expense for the months ended in Feb. 2024 was 円-141 Mil. Its Operating Income for the months ended in Feb. 2024 was 円2,476 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Feb. 2024 was 円7,813 Mil.

Saizeriya Co's Interest Coverage for the quarter that ended in Feb. 2024 is

Interest Coverage=-1*Operating Income (Q: Feb. 2024 )/Interest Expense (Q: Feb. 2024 )
=-1*2476/-141
=17.56

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

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

Saizeriya Co's Debt to Revenue Ratio for the quarter that ended in Feb. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Feb. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(19064 + 7813) / 207952
=0.13

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.

Saizeriya Co has a Z-score of 5.40, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 5.4 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.


Saizeriya Co  (TSE:7581) 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.

Saizeriya Co has the Financial Strength Rank of 7.


Saizeriya Co Financial Strength Related Terms

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Saizeriya Co (TSE:7581) Business Description

Traded in Other Exchanges
N/A
Address
2-5 Asahi, Yoshikawa City, JPN, 3420008
Saizeriya Co Ltd operates more than 1,000 casual Italian-style restaurants in Japan and close to another 300 of those restaurants in other Southeast Asian countries, particularly China. Saizeriya has a vertically integrated manufacturing and sales system that covers all stages from raw material purchasing and processing to restaurant service. Its business includes farms and factories in Japan, Australia, and Italy to grow vegetables and process meat and dairy. More than three fourths of the company's sales come from restaurants in Japan.

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