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Tree House Education & Accessories (BOM:533540) Financial Strength : 10 (As of Mar. 2024)


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What is Tree House Education & Accessories Financial Strength?

Tree House Education & Accessories has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Tree House Education & Accessories Ltd shows strong financial strength.

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.

Tree House Education & Accessories has no long-term debt (1). Tree House Education & Accessories's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.00. As of today, Tree House Education & Accessories's Altman Z-Score is 11.86.

(1) Note: An indication of "no long-term debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.


Competitive Comparison of Tree House Education & Accessories's Financial Strength

For the Education & Training Services subindustry, Tree House Education & Accessories'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.


Tree House Education & Accessories's Financial Strength Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Tree House Education & Accessories's Financial Strength distribution charts can be found below:

* The bar in red indicates where Tree House Education & Accessories's Financial Strength falls into.



Tree House Education & Accessories 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:

Tree House Education & Accessories's Interest Expense for the months ended in Mar. 2024 was ₹0.00 Mil. Its Operating Income for the months ended in Mar. 2024 was ₹-5.40 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ₹0.00 Mil.

Tree House Education & Accessories's Interest Coverage for the quarter that ended in Mar. 2024 is

Tree House Education & Accessories had no long-term debt (1).

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. Tree House Education & Accessories Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

Tree House Education & Accessories's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0.2 + 0) / 77.6
=0.00

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.

Tree House Education & Accessories has a Z-score of 11.86, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 11.86 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.


Tree House Education & Accessories  (BOM:533540) 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.

Tree House Education & Accessories has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.


Tree House Education & Accessories Financial Strength Related Terms

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Tree House Education & Accessories (BOM:533540) Business Description

Traded in Other Exchanges
Address
Dadabhai Road, 101, Sapphire Plaza, Opposite CNMS School, Vile Parle (West), Mumbai, MH, IND, 400056
Tree House Education & Accessories Ltd provides providing education and related services including leasing of education infrastructure services in India. The group offers pre-primary education services and Education support services. It has a curriculum designed in-house using a combination of Playway and Montessori methods. Apart from reading, writing, and arithmetic it also teaches life skills and value education. In addition, the group provides various activities including playing with toys, listening to music, socio-dramatic plays, creative crafts and festival celebrations. It operates playgroup, nursery, junior kindergarten (KG), senior KG, summer camp, teachers training course, hobby class and daycare services.

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