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The Bank of Khyber (KAR:BOK) Financial Strength : 4 (As of Mar. 2024)


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What is The Bank of Khyber Financial Strength?

The Bank of Khyber 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 The Bank of Khyber's interest coverage with the available data. The Bank of Khyber's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.22. Altman Z-Score does not apply to banks and insurance companies.


The Bank of Khyber 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:

The Bank of Khyber's Interest Expense for the months ended in Mar. 2024 was ₨-13,439 Mil. Its Operating Income for the months ended in Mar. 2024 was ₨0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ₨3,501 Mil.

The Bank of Khyber's Interest Coverage for the quarter that ended in Mar. 2024 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. The Bank of Khyber has enough cash to cover all of its debt. Its financial situation is stable.

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

The Bank of Khyber'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 + 3500.999) / 15846.048
=0.22

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.


The Bank of Khyber  (KAR:BOK) 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.

The Bank of Khyber has the Financial Strength Rank of 4.


The Bank of Khyber Financial Strength Related Terms

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The Bank of Khyber (KAR:BOK) Business Description

Traded in Other Exchanges
N/A
Address
24 - The Mall, Peshawar Cantt, Peshawar, KP, PAK, 25000
The Bank of Khyber is involved in providing various financial services. It operates through various business segments that are Corporate Finance, which includes mergers and acquisition, underwriting, privatization, securitization, research, and others; Trading and Sales, which includes fixed income, equity, foreign exchanges, commodities, credit, funding, own position securities, and others; Retail Banking, which includes retail lending and deposits, banking services, trust and estates, and others; and Commercial Banking, which includes project finance, real estate, export finance, and others. Geographically, the company operates in Pakistan only.