GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » NEXTAGE Co Ltd (TSE:3186) » Definitions » Financial Strength

NEXTAGE Co (TSE:3186) Financial Strength : 4 (As of Feb. 2024)


View and export this data going back to 2013. Start your Free Trial

What is NEXTAGE Co Financial Strength?

NEXTAGE Co 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.

NEXTAGE Co's Interest Coverage for the quarter that ended in Feb. 2024 was 31.64. NEXTAGE Co's debt to revenue ratio for the quarter that ended in Feb. 2024 was 0.21. As of today, NEXTAGE Co's Altman Z-Score is 4.12.


Competitive Comparison of NEXTAGE Co's Financial Strength

For the Auto & Truck Dealerships subindustry, NEXTAGE Co'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.


NEXTAGE Co's Financial Strength Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, NEXTAGE Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where NEXTAGE Co's Financial Strength falls into.



NEXTAGE Co 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:

NEXTAGE Co's Interest Expense for the months ended in Feb. 2024 was 円-70 Mil. Its Operating Income for the months ended in Feb. 2024 was 円2,215 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Feb. 2024 was 円64,386 Mil.

NEXTAGE Co's Interest Coverage for the quarter that ended in Feb. 2024 is

Interest Coverage=-1*Operating Income (Q: Feb. 2024 )/Interest Expense (Q: Feb. 2024 )
=-1*2215/-70
=31.64

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

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

NEXTAGE Co's Debt to Revenue Ratio for the quarter that ended in Feb. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Feb. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(38345 + 64386) / 477828
=0.21

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.

NEXTAGE Co has a Z-score of 4.12, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.12 is strong.

* 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.


NEXTAGE Co  (TSE:3186) 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.

NEXTAGE Co has the Financial Strength Rank of 4.


NEXTAGE Co Financial Strength Related Terms

Thank you for viewing the detailed overview of NEXTAGE Co's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


NEXTAGE Co (TSE:3186) Business Description

Traded in Other Exchanges
Address
1-26-8 Aoi Higashi-ku, Aichi Prefecture, Nagoya, JPN, 461-0004
NEXTAGE Co Ltd is principally engaged in the dealing of used cars. It is primarily involved in operation, maintenance, insurance agency and automobile dealing of retails used domestic cars as well as sells imported cars and SUV/vans. In addition, the company operates an automobile maintenance business.

NEXTAGE Co (TSE:3186) Headlines

No Headlines