What is Sun International Financial Strength?
Sun International has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Sun International Ltd 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.
Sun International's Interest Coverage for the quarter that ended in Dec. 2023 was 3.95.
Sun International's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.58.
As of today, Sun International's Altman Z-Score is 2.11.
Competitive Comparison of Sun International's Financial Strength
For the Resorts & Casinos subindustry, Sun International'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.
Sun International's Financial Strength Distribution in the Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Sun International's Financial Strength distribution charts can be found below:
* The bar in red indicates where Sun International's Financial Strength falls into.
Sun International 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:
Sun International's Interest Expense for the
months ended in Dec. 2023 was $-18.9 Mil. Its Operating Income for the
months ended in Dec. 2023 was $74.7 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $266.0 Mil.
Sun International's Interest Coverage for the quarter that ended in Dec. 2023 is
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Sun International Ltd interest coverage is 3.81, which is low.
2. Debt to revenue ratio. The lower, the better.
Sun International's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is
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.
Sun International has a Z-score of 2.11, indicating it is in Grey Zones. This implies that Sun International 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 2.11 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.
Sun International (Sun International) Business Description
Traded in Other Exchanges
Address
6 Sandown Valley Crescent, Sandton, PO Box 782121, Gauteng, Johannesburg, ZAF, 2196
Sun International Ltd is a resorts and casinos company. The business operates or has an interest in numerous resorts, luxury hotels, and casinos. Sun International has numerous business segments as it breaks out its revenue by resort. These segments include, but are not limited to, GrandWest, Sun City, Sibaya, Carnival City, Boardwalk, Wild Coast, Monticello, Meropa, Flamingo, and Golden Valley. The company has global operations with resorts primarily in Africa, and it earns the vast majority of its revenue in South Africa.
Sun International (Sun International) Headlines
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