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Al Hassan Ghazi Ibrahim Shaker (SAU:1214) Financial Strength : 4 (As of Mar. 2024)


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What is Al Hassan Ghazi Ibrahim Shaker Financial Strength?

Al Hassan Ghazi Ibrahim Shaker 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.

Al Hassan Ghazi Ibrahim Shaker's Interest Coverage for the quarter that ended in Mar. 2024 was 3.54. Al Hassan Ghazi Ibrahim Shaker's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.25. As of today, Al Hassan Ghazi Ibrahim Shaker's Altman Z-Score is 2.09.


Competitive Comparison of Al Hassan Ghazi Ibrahim Shaker's Financial Strength

For the Electronics & Computer Distribution subindustry, Al Hassan Ghazi Ibrahim Shaker'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.


Al Hassan Ghazi Ibrahim Shaker's Financial Strength Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Al Hassan Ghazi Ibrahim Shaker's Financial Strength distribution charts can be found below:

* The bar in red indicates where Al Hassan Ghazi Ibrahim Shaker's Financial Strength falls into.



Al Hassan Ghazi Ibrahim Shaker 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 Hassan Ghazi Ibrahim Shaker's Interest Expense for the months ended in Mar. 2024 was ﷼-10 Mil. Its Operating Income for the months ended in Mar. 2024 was ﷼35 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ﷼11 Mil.

Al Hassan Ghazi Ibrahim Shaker's Interest Coverage for the quarter that ended in Mar. 2024 is

Interest Coverage=-1*Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*34.845/-9.835
=3.54

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

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

Al Hassan Ghazi Ibrahim Shaker'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
=(396.299 + 11.365) / 1652.968
=0.25

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.

Al Hassan Ghazi Ibrahim Shaker has a Z-score of 2.09, indicating it is in Grey Zones. This implies that Al Hassan Ghazi Ibrahim Shaker is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.09 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* 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 Hassan Ghazi Ibrahim Shaker  (SAU:1214) 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 Hassan Ghazi Ibrahim Shaker has the Financial Strength Rank of 4.


Al Hassan Ghazi Ibrahim Shaker Financial Strength Related Terms

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Al Hassan Ghazi Ibrahim Shaker (SAU:1214) Business Description

Traded in Other Exchanges
N/A
Address
King Fahad Road, Near the Raval Tower, P.O.Box 5124, Shaker Group Building, Alsahafa District, Riyadh, SAU, 11422
Al Hassan Ghazi Ibrahim Shaker is engaged in the trading and wholesale parts, electronic equipment, household equipment and air-conditioners, and maintenance. It also provides agency services for companies in the same business. The company trades for the brands like LG, maytag, Ariston, Indesit, Midea, and Kitchen aid.

Al Hassan Ghazi Ibrahim Shaker (SAU:1214) Headlines

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