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Speciality Restaurants (BOM:534425) Financial Strength : 6 (As of Mar. 2024)


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What is Speciality Restaurants Financial Strength?

Speciality Restaurants has the Financial Strength Rank of 6.

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.

Speciality Restaurants's Interest Coverage for the quarter that ended in Mar. 2024 was 0.75. Speciality Restaurants's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.36. As of today, Speciality Restaurants's Altman Z-Score is 4.01.


Competitive Comparison of Speciality Restaurants's Financial Strength

For the Restaurants subindustry, Speciality Restaurants'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.


Speciality Restaurants's Financial Strength Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Speciality Restaurants's Financial Strength distribution charts can be found below:

* The bar in red indicates where Speciality Restaurants's Financial Strength falls into.



Speciality Restaurants 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:

Speciality Restaurants's Interest Expense for the months ended in Mar. 2024 was ₹-34 Mil. Its Operating Income for the months ended in Mar. 2024 was ₹25 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ₹1,091 Mil.

Speciality Restaurants'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*25.4/-34
=0.75

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

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

Speciality Restaurants'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
=(296.5 + 1091.3) / 3847.6
=0.36

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.

Speciality Restaurants has a Z-score of 4.01, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.01 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.


Speciality Restaurants  (BOM:534425) 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.

Speciality Restaurants has the Financial Strength Rank of 6.


Speciality Restaurants Financial Strength Related Terms

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Speciality Restaurants (BOM:534425) Business Description

Traded in Other Exchanges
Address
Off. New Link Road, 4th Floor, Veera Industrial Estate, B-25, Morya Landmark 1, Andheri (West), Mumbai, MH, IND, 400053
Speciality Restaurants Ltd is engaged in restaurants and mobile food service business. The principal business of the company is operating food outlets and sweet shops. The company operates within India. Its brands include Mainland China, Asia Kitchen by Mainland China, Oh! Calcutta, Hay, Cafe Mezzuna, Sweet Bengal, Hoppipola, Sigree, Machaan, Haka, Flame and Grill etc. The group predominantly operates in India.

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