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Dfcity Group Bhd (XKLS:5165) Financial Strength : 2 (As of Sep. 2023)


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What is Dfcity Group Bhd Financial Strength?

Dfcity Group 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:

Dfcity Group 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.

Dfcity Group Bhd's Interest Coverage for the quarter that ended in Sep. 2023 was 1.50. Dfcity Group Bhd's debt to revenue ratio for the quarter that ended in Sep. 2023 was 1.40. As of today, Dfcity Group Bhd's Altman Z-Score is 1.25.


Competitive Comparison of Dfcity Group Bhd's Financial Strength

For the Building Materials subindustry, Dfcity Group Bhd'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.


Dfcity Group Bhd's Financial Strength Distribution in the Building Materials Industry

For the Building Materials industry and Basic Materials sector, Dfcity Group Bhd's Financial Strength distribution charts can be found below:

* The bar in red indicates where Dfcity Group Bhd's Financial Strength falls into.



Dfcity Group 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:

Dfcity Group Bhd's Interest Expense for the months ended in Sep. 2023 was RM-0.40 Mil. Its Operating Income for the months ended in Sep. 2023 was RM0.59 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was RM10.53 Mil.

Dfcity Group Bhd's Interest Coverage for the quarter that ended in Sep. 2023 is

Interest Coverage=-1*Operating Income (Q: Sep. 2023 )/Interest Expense (Q: Sep. 2023 )
=-1*0.593/-0.396
=1.50

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

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

Dfcity Group Bhd's Debt to Revenue Ratio for the quarter that ended in Sep. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(10.395 + 10.525) / 14.896
=1.40

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.

Dfcity Group Bhd has a Z-score of 1.25, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.25 is in distress zone. This implies bankruptcy possibility in the next two years.

* 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.


Dfcity Group Bhd  (XKLS:5165) 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.

Dfcity Group 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.


Dfcity Group Bhd Financial Strength Related Terms

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Dfcity Group Bhd (XKLS:5165) Business Description

Traded in Other Exchanges
N/A
Address
Lot 197, Jalan Sungai Putat, Batu Berendam, Melaka, MYS, 75350
Dfcity Group Bhd through its subsidiaries, is engaged in the manufacturing and sale of dimension stones and related products. Its business activities include sourcing, processing, and distributing a wide range of dimension stones including granite, marble, sandstone, and slate. Hock Heng's products are mainly used for a wide array of applications in the commercial and residential properties, such as facade walls, flooring, staircases, monuments, furniture, pillars, garden sets, and landscaping. The company's segments include Sales of goods; Construction; and Property development. The company generates majority of revenue from sales of goods segment , Geographically it generates majority of its revenue from malaysia.

Dfcity Group Bhd (XKLS:5165) Headlines

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