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Acom Co (Acom Co) Financial Strength : 2 (As of Dec. 2023)


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What is Acom Co Financial Strength?

Acom Co 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:

Acom Co Ltd 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.

GuruFocus does not calculate Acom Co's interest coverage with the available data. Acom Co's debt to revenue ratio for the quarter that ended in Dec. 2023 was 2.20. As of today, Acom Co's Altman Z-Score is 2.27.


Competitive Comparison of Acom Co's Financial Strength

For the Credit Services subindustry, Acom 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.


Acom Co's Financial Strength Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Acom Co's Financial Strength distribution charts can be found below:

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



Acom 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:

Acom Co's Interest Expense for the months ended in Dec. 2023 was $0 Mil. Its Operating Income for the months ended in Dec. 2023 was $157 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $2,839 Mil.

Acom Co's Interest Coverage for the quarter that ended in Dec. 2023 is

GuruFocus does not calculate Acom Co's interest coverage with the available data.

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

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

Acom Co'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
=(1728.819 + 2838.677) / 2074.904
=2.20

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.

Acom Co has a Z-score of 2.27, indicating it is in Grey Zones. This implies that Acom Co is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.27 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* 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.


Acom Co  (OTCPK:ACJJF) 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.

Acom Co 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.


Acom Co Financial Strength Related Terms

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


Acom Co (Acom Co) Business Description

Traded in Other Exchanges
Address
1-1, Marunouchi 2-chome, Chiyoda-ku, Meiji Yasuda Seimei Building, Tokyo, JPN, 100-8307
Acom Co Ltd is a Japanese consumer finance company. Its four core business categories are loan and credit, guarantee services, loan servicing, and overseas financials. Its loan and credit business offers credit cards and unsecured loans. The guarantee segment provides credit guarantee services, including loan portfolios and marketing analyses. The firm also offers loan administrative services in its loan servicing segment. Acom's overseas businesses are mostly in the retail finance sector in Thailand and Indonesia. In addition to ATMs, Acom's distribution relies on multifaceted sales channels, including a call center, Internet services, and mobile phones. The company earns its revenue from its loan and credit card business in Japan.

Acom Co (Acom Co) Headlines

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