Ajman Bank PJSC (DFM:AJMANBANK) Financial Strength : 4 (As of Mar. 2024)

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What is Ajman Bank PJSC Financial Strength?

Ajman Bank PJSC has the Financial Strength Rank of 4.

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 Ajman Bank PJSC's interest coverage with the available data. Ajman Bank PJSC's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.01. Altman Z-Score does not apply to banks and insurance companies.

Ajman Bank PJSC 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:

Ajman Bank PJSC's Interest Expense for the months ended in Mar. 2024 was د.إ0.0 Mil. Its Operating Income for the months ended in Mar. 2024 was د.إ0.0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was د.إ10.6 Mil.

Ajman Bank PJSC's Interest Coverage for the quarter that ended in Mar. 2024 is

GuruFocus does not calculate Ajman Bank PJSC's interest coverage with the available data.

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. Ajman Bank PJSC has enough cash to cover all of its debt. Its financial situation is stable.

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

Ajman Bank PJSC'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	+	10.567)	/	766.752
	=	0.01

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.

Altman Z-Score does not apply to banks and insurance companies.

* 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.

Ajman Bank PJSC (DFM:AJMANBANK) 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.

Ajman Bank PJSC has the Financial Strength Rank of 4.

Ajman Bank PJSC Financial Strength Related Terms

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Ajman Bank PJSC (DFM:AJMANBANK) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Ajman Bank PJSC (DFM:AJMANBANK) » Definitions » Financial Strength

Comparable Companies

Traded in Other Exchanges

N/A

Address

Khalifa Street, P.O. Box 7770, A and F Towers, Ajman, ARE

Website

https://www.ajmanbank.ae

Ajman Bank PJSC provides banking products and services in the United Arab Emirates, Gulf countries, and internationally. It focuses on undertaking banking, financing, and investing through Islamic financing and investment products. The company's operating segments include consumer banking, corporate banking, and treasury. It generates majority of its revenue from the corporate banking segment, specifically its Islamic financing and investing assets. The corporate banking segment incorporates transactions with corporate bodies, including government and public bodies and comprises Islamic financing and investing assets, deposits, and trade finance transactions.