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Malaysia Building Society Bhd (XKLS:1171) Financial Strength : 2 (As of Dec. 2023)


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What is Malaysia Building Society Bhd Financial Strength?

Malaysia Building Society Bhd has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Malaysia Building Society Bhd 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 Malaysia Building Society Bhd's interest coverage with the available data. Malaysia Building Society Bhd's debt to revenue ratio for the quarter that ended in Dec. 2023 was 2.69. Altman Z-Score does not apply to banks and insurance companies.


Malaysia Building Society Bhd 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:

Malaysia Building Society Bhd's Interest Expense for the months ended in Dec. 2023 was RM-16 Mil. Its Operating Income for the months ended in Dec. 2023 was RM0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was RM2,431 Mil.

Malaysia Building Society Bhd's Interest Coverage for the quarter that ended in Dec. 2023 is

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

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Malaysia Building Society Bhd has enough cash to cover all of its debt. Its financial situation is stable.

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

Malaysia Building Society Bhd's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 2431.238) / 905.416
=2.69

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.


Malaysia Building Society Bhd  (XKLS:1171) 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.

Malaysia Building Society Bhd has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Malaysia Building Society Bhd Financial Strength Related Terms

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Malaysia Building Society Bhd (XKLS:1171) Business Description

Traded in Other Exchanges
N/A
Address
Level 25, Menara MBSB Bank, Lot 12, Persiaran Barat, Seksyen 52, PJ Sentral, Petaling Jaya, SGR, MYS, 46200
Malaysia Building Society Bhd is a Malaysia-based banking company. The company operates through four major segments: Consumer Banking, which includes consumer financing such as property financing, personal financing and wealth management services with individual customers in Malaysia; Corporate Banking segment includes corporate financing, wholesale financing, contract financing and commercial property financing with business customers; Global Market segment incldues saving accounts, current accounts, term deposits, investment accounts, treasury activities including money market, sukuk, derivatives and trading of capital market securities; and Others.