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Schroder Japan Trust (LSE:SJG) Financial Strength : 4 (As of Jan. 2024)


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What is Schroder Japan Trust Financial Strength?

Schroder Japan Trust 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 Schroder Japan Trust's interest coverage with the available data. Schroder Japan Trust's debt to revenue ratio for the quarter that ended in Jan. 2024 was 0.70. Altman Z-Score does not apply to banks and insurance companies.


Schroder Japan Trust 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:

Schroder Japan Trust's Interest Expense for the months ended in Jan. 2024 was £-0.14 Mil. Its Operating Income for the months ended in Jan. 2024 was £0.00 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2024 was £42.98 Mil.

Schroder Japan Trust's Interest Coverage for the quarter that ended in Jan. 2024 is

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

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

Schroder Japan Trust's Debt to Revenue Ratio for the quarter that ended in Jan. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Jan. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 42.977) / 61.632
=0.70

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.


Schroder Japan Trust  (LSE:SJG) 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.

Schroder Japan Trust has the Financial Strength Rank of 4.


Schroder Japan Trust Financial Strength Related Terms

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Schroder Japan Trust (LSE:SJG) Business Description

Traded in Other Exchanges
Address
1 London Wall Place, London, GBR, EC2Y 5AU
Schroder Japan Trust PLC is an investment trust located in the United Kingdom. It aims to achieve growth more than the TSE First Section Total Return Index in sterling over the longer term to provide capital growth for its investors. To achieve this objective, the company follows the strategy of investing in an actively managed portfolio comprising of securities listed on the Japanese stock markets. It predominantly invests in equities and partly in other instruments like warrants, convertibles, and other derivative instruments across sectors such as consumer goods and industrials. The company operates through its investment manager, Schroder Unit Trusts Ltd.