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Seohee Construction Co (XKRX:035890) Financial Strength : 8 (As of Mar. 2024)


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What is Seohee Construction Co Financial Strength?

Seohee Construction Co has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Seohee Construction Co Ltd shows strong financial strength.

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.

Seohee Construction Co's Interest Coverage for the quarter that ended in Mar. 2024 was 42.16. Seohee Construction Co's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.08. As of today, Seohee Construction Co's Altman Z-Score is 2.58.


Competitive Comparison of Seohee Construction Co's Financial Strength

For the Engineering & Construction subindustry, Seohee Construction 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.


Seohee Construction Co's Financial Strength Distribution in the Construction Industry

For the Construction industry and Industrials sector, Seohee Construction Co's Financial Strength distribution charts can be found below:

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



Seohee Construction 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:

Seohee Construction Co's Interest Expense for the months ended in Mar. 2024 was ₩-1,155 Mil. Its Operating Income for the months ended in Mar. 2024 was ₩48,711 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ₩25,822 Mil.

Seohee Construction Co'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*48711.321/-1155.411
=42.16

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

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

Seohee Construction Co'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
=(92567.23 + 25822.469) / 1459138.468
=0.08

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.

Seohee Construction Co has a Z-score of 2.58, indicating it is in Grey Zones. This implies that Seohee Construction Co 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 2.58 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.


Seohee Construction Co  (XKRX:035890) 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.

Seohee Construction Co has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.


Seohee Construction Co Financial Strength Related Terms

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Seohee Construction Co (XKRX:035890) Business Description

Traded in Other Exchanges
N/A
Address
South Ring Road 2583, Seo-hee Towers 13 Stories, Seocho-gu, Seocho-dong, Seoul, KOR
Seohee Construction Co Ltd operates as a construction company primarily in South Korea. It primarily undertakes housing, enforcement, redevelopment, reconstruction, officetels, public apartment, civil engineering, and environment projects, as well as other private contracts. It also invests in environment conservation and environmental projects for the development of new and renewable energy.

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