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Al Ahli Bank Of Kuwait (KUW:ABK) Financial Strength : 1 (As of Mar. 2024)


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What is Al Ahli Bank Of Kuwait Financial Strength?

Al Ahli Bank Of Kuwait has the Financial Strength Rank of 1. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Al Ahli Bank Of Kuwait 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 Al Ahli Bank Of Kuwait's interest coverage with the available data. Al Ahli Bank Of Kuwait's debt to revenue ratio for the quarter that ended in Mar. 2024 was 2.64. Altman Z-Score does not apply to banks and insurance companies.

Al Ahli Bank Of Kuwait 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:

Al Ahli Bank Of Kuwait's Interest Expense for the months ended in Mar. 2024 was KWD-79.2 Mil. Its Operating Income for the months ended in Mar. 2024 was KWD0.0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was KWD537.4 Mil.

Al Ahli Bank Of Kuwait's Interest Coverage for the quarter that ended in Mar. 2024 is

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

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

Al Ahli Bank Of Kuwait'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 + 537.364) / 203.376
=2.64

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.

Al Ahli Bank Of Kuwait  (KUW:ABK) 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.

Al Ahli Bank Of Kuwait has the Financial Strength Rank of 1. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Al Ahli Bank Of Kuwait Financial Strength Related Terms

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Al Ahli Bank Of Kuwait (KUW:ABK) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Al Ahli Bank Of Kuwait (KUW:ABK) » Definitions » Financial Strength
Comparable Companies
KUW:KPROJ KUW:BURG KUW:ALMUTAHED KUW:WARBABANK KUW:KIB KUW:GBK KUW:CBK KUW:BOUBYAN CAR:BPV CAR:MVZ.A CAR:BNC NSE:HDFCBANK SHSE:600036 NSE:ICICIBANK SAU:1120 ISX:BBCA XPAR:BNP MIC:SBER SGX:D05 NSE:SBIN
Traded in Other Exchanges
N/A
Address
Al Safat Square, Ahmed Al Jaber Street, P.O. Box 1387, Safat, Kuwait City, KWT, 13014
Website
https://www.eahli.com
Al Ahli Bank Of Kuwait is a company engaged in the banking sector, primarily in Kuwait, United Arab Emirates, and Egypt. The group is organized into three business segments. The commercial Banking segment comprises a full range of credit, deposit, and related banking services provided to its corporate and institutional customers. Treasury and Investments segment comprises treasury services provided to customers and balance sheet management activities including money market, derivatives, propriety investment activities, assets management and the residual impact of inter-segment fund transfer pricing, and the Retail and private banking segment comprising products and services to customers which includes loans, credit cards, and wealth management.