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SBC Exports (BOM:542725) Financial Strength : 6 (As of Dec. 2023)


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What is SBC Exports Financial Strength?

SBC Exports 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.

SBC Exports's Interest Coverage for the quarter that ended in Dec. 2023 was 2.45. SBC Exports's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.00. As of today, SBC Exports's Altman Z-Score is 8.78.


Competitive Comparison of SBC Exports's Financial Strength

For the Conglomerates subindustry, SBC Exports'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.


SBC Exports's Financial Strength Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, SBC Exports's Financial Strength distribution charts can be found below:

* The bar in red indicates where SBC Exports's Financial Strength falls into.



SBC Exports 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:

SBC Exports's Interest Expense for the months ended in Dec. 2023 was ₹-15 Mil. Its Operating Income for the months ended in Dec. 2023 was ₹36 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was ₹0 Mil.

SBC Exports's Interest Coverage for the quarter that ended in Dec. 2023 is

Interest Coverage=-1*Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*35.711/-14.554
=2.45

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

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

SBC Exports'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
=(0 + 0) / 2078.368
=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.

SBC Exports has a Z-score of 8.78, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 8.78 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.


SBC Exports  (BOM:542725) 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.

SBC Exports has the Financial Strength Rank of 6.


SBC Exports Financial Strength Related Terms

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SBC Exports (BOM:542725) Business Description

Traded in Other Exchanges
Address
49/95 Site-IV Sahibabad Industrial Area, Ghaziabad, UP, IND, 201010
SBC Exports Ltd is engaged in the Trading of handmade carpets, cushion covers, cotton quilts, bedspreads, and others. To diversify the business, the group expanded business activities in Information Technology, Manpower Supply Services, and Tour and Travels Services. It also added services like IT Solutions, E-Governances Services, Web/Software Developments, Scanning and Digitization, System Integration, and others. Its segment comprises of Garment Manufacturing and Trading; IT and Manpower Supply; and Tour and Travelling Operator.

SBC Exports (BOM:542725) Headlines

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