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First Juken Co (TSE:8917) Financial Strength : 6 (As of Jan. 2024)


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What is First Juken Co Financial Strength?

First Juken Co has the Financial Strength Rank of 6.

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.

First Juken Co's Interest Coverage for the quarter that ended in Jan. 2024 was 14.33. First Juken Co's debt to revenue ratio for the quarter that ended in Jan. 2024 was 0.27. As of today, First Juken Co's Altman Z-Score is 3.33.


Competitive Comparison of First Juken Co's Financial Strength

For the Residential Construction subindustry, First Juken 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.


First Juken Co's Financial Strength Distribution in the Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, First Juken Co's Financial Strength distribution charts can be found below:

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



First Juken 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:

First Juken Co's Interest Expense for the months ended in Jan. 2024 was 円-20 Mil. Its Operating Income for the months ended in Jan. 2024 was 円290 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2024 was 円1,844 Mil.

First Juken Co's Interest Coverage for the quarter that ended in Jan. 2024 is

Interest Coverage=-1*Operating Income (Q: Jan. 2024 )/Interest Expense (Q: Jan. 2024 )
=-1*289.961/-20.24
=14.33

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

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

First Juken Co's Debt to Revenue Ratio for the quarter that ended in Jan. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Jan. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(6341.065 + 1843.594) / 29921.068
=0.27

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.

First Juken Co has a Z-score of 3.33, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.33 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.


First Juken Co  (TSE:8917) 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.

First Juken Co has the Financial Strength Rank of 6.


First Juken Co Financial Strength Related Terms

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First Juken Co (TSE:8917) Business Description

Traded in Other Exchanges
N/A
Address
5-6-9 Higashi-Namba-cho, Amazaki-shi, Hyogo, JPN, 600892
First Juken Co Ltd is a Japanese based company engaged in the development of residential housing and condominium buildings. Its detached housing business offers the wooden house with a traditional conventional construction method. Its residential condominium business offers house on sale and rental. It is also engaged insurance business that offers fire insurance and life insurance.

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