Corporate Travel Management (ASX:CTD) Financial Strength : 8 (As of Dec. 2023)

Competitive Comparison of Corporate Travel Management's Financial Strength

For the Travel Services subindustry, Corporate Travel Management'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.

Corporate Travel Management's Financial Strength Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Corporate Travel Management's Financial Strength distribution charts can be found below:

* The bar in red indicates where Corporate Travel Management's Financial Strength falls into.

Corporate Travel Management 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:

Corporate Travel Management's Interest Expense for the months ended in Dec. 2023 was A$-1.2 Mil. Its Operating Income for the months ended in Dec. 2023 was A$57.1 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was A$30.9 Mil.

Corporate Travel Management's Interest Coverage for the quarter that ended in Dec. 2023 is

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

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Corporate Travel Management Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

Corporate Travel Management's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

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.

Corporate Travel Management has a Z-score of 3.29, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.29 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.

Corporate Travel Management  (ASX:CTD) 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.

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

Corporate Travel Management Financial Strength Related Terms

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Corporate Travel Management (ASX:CTD) Business Description