What is CSL Finance Financial Strength?
CSL Finance has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
CSL Finance 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 CSL Finance's interest coverage with the available data.
CSL Finance's debt to revenue ratio for the quarter that ended in Mar. 2024 was 2.74.
As of today, CSL Finance's Altman Z-Score is 2.75.
Competitive Comparison of CSL Finance's Financial Strength
For the Credit Services subindustry, CSL Finance'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.
CSL Finance's Financial Strength Distribution in the Credit Services Industry
For the Credit Services industry and Financial Services sector, CSL Finance's Financial Strength distribution charts can be found below:
* The bar in red indicates where CSL Finance's Financial Strength falls into.
CSL Finance 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:
CSL Finance's Interest Expense for the
months ended in Mar. 2024 was ₹0 Mil. Its Operating Income for the
months ended in Mar. 2024 was ₹238 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ₹5,049 Mil.
CSL Finance's Interest Coverage for the quarter that ended in Mar. 2024 is
| GuruFocus does not calculate CSL Finance'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.
CSL Finance's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 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.
CSL Finance has a Z-score of 2.75, indicating it is in Grey Zones. This implies that CSL Finance 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 2.75 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.
CSL Finance (BOM:530067) Business Description
Traded in Other Exchanges
Address
World Trade Tower, 716-717, 7th Floor, Tower B, Sector 16, Noida, UP, IND, 201301
CSL Finance Ltd operates as a non-banking financial institution. The business activity of the company is to offer secured and unsecured lending to small and medium-size business units to fulfil their financial needs. The company's business is classified into two broader segments of SME business and Wholesale business. SME business is mainly focused on micro and small business loans to various business entities, which is secured mostly against self-occupied Residential or Commercial properties. Wholesale business is focused on big-ticket size loans for the working capital requirement of businesses. The primary revenue source of the company is interest income. The company operates within India.
CSL Finance (BOM:530067) Headlines
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