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Soop Co (XKRX:067160) Financial Strength : 9 (As of Dec. 2023)


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What is Soop Co Financial Strength?

Soop Co has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Soop 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.

Soop Co's Interest Coverage for the quarter that ended in Dec. 2023 was 109.55. Soop Co's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.04. As of today, Soop Co's Altman Z-Score is 4.70.


Competitive Comparison of Soop Co's Financial Strength

For the Internet Content & Information subindustry, Soop 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.


Soop Co's Financial Strength Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Soop Co's Financial Strength distribution charts can be found below:

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



Soop 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:

Soop Co's Interest Expense for the months ended in Dec. 2023 was ₩-241 Mil. Its Operating Income for the months ended in Dec. 2023 was ₩26,386 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was ₩6,296 Mil.

Soop Co's Interest Coverage for the quarter that ended in Dec. 2023 is

Interest Coverage=-1*Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*26386.415/-240.854
=109.55

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. Soop Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

Soop Co'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
=(10205.797 + 6295.553) / 401462.776
=0.04

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.

Soop Co has a Z-score of 4.70, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.7 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.


Soop Co  (XKRX:067160) 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.

Soop Co has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.


Soop Co Financial Strength Related Terms

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Soop Co (XKRX:067160) Business Description

Traded in Other Exchanges
N/A
Address
201/801/901, 2 Dong,1Danji, Pangyo Seven Venture Valley, Bundang-Gu, Seongnam, KOR, 13487
AfreecaTV Co is engaged in offering Internet-based services around the social media platform AfreecaTV. It offers digital media storage, streaming, downloading, video on demand, and advertising services.

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