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Khulna Printing & Packaging (DHA:KPPL) Financial Strength : 2 (As of Jun. 2022)


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What is Khulna Printing & Packaging Financial Strength?

Khulna Printing & Packaging 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.

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.

Khulna Printing & Packaging's Interest Coverage for the quarter that ended in Jun. 2022 was 17.50. As of today, Khulna Printing & Packaging's Altman Z-Score is 0.00.


Competitive Comparison of Khulna Printing & Packaging's Financial Strength

For the Packaging & Containers subindustry, Khulna Printing & Packaging'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.


Khulna Printing & Packaging's Financial Strength Distribution in the Packaging & Containers Industry

For the Packaging & Containers industry and Consumer Cyclical sector, Khulna Printing & Packaging's Financial Strength distribution charts can be found below:

* The bar in red indicates where Khulna Printing & Packaging's Financial Strength falls into.



Khulna Printing & Packaging 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:

Khulna Printing & Packaging's Interest Expense for the months ended in Jun. 2022 was BDT-4.05 Mil. Its Operating Income for the months ended in Jun. 2022 was BDT70.90 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was BDT315.53 Mil.

Khulna Printing & Packaging's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*70.9/-4.051
=17.50

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

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

Khulna Printing & Packaging's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(236.165 + 315.533) / 0
=N/A

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.

Khulna Printing & Packaging has a Z-score of 0.00, indicating it is in Distress Zones. This implies bankrupcy 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.


Khulna Printing & Packaging  (DHA:KPPL) 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.

Khulna Printing & Packaging 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.


Khulna Printing & Packaging Financial Strength Related Terms

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Khulna Printing & Packaging (DHA:KPPL) Business Description

Traded in Other Exchanges
N/A
Address
Khulna Mongla Road, Katakhali, Shambagath, Post: Lockpur, P.S Fakirhat, Bagerhat, BGD
Khulna Printing & Packaging Ltd is engaged in providing printing and packaging solutions. Its product portfolio includes products like printing of inner BOOP bag, polybag, paper box, master cases, and other related products. The company operates in five segments namely, Master carton, Inner carton, Master sticker, and Inner sticker. Majority of its revenue is earned from the Bangladesh market.

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