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PT PP London Sumatra Indonesia Tbk (ISX:LSIP) Financial Strength : 10 (As of Mar. 2024)


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What is PT PP London Sumatra Indonesia Tbk Financial Strength?

PT PP London Sumatra Indonesia Tbk has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

PT PP London Sumatra Indonesia Tbk 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.

PT PP London Sumatra Indonesia Tbk's Interest Coverage for the quarter that ended in Mar. 2024 was 1,155.30. PT PP London Sumatra Indonesia Tbk's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.00. As of today, PT PP London Sumatra Indonesia Tbk's Altman Z-Score is 5.03.


Competitive Comparison of PT PP London Sumatra Indonesia Tbk's Financial Strength

For the Farm Products subindustry, PT PP London Sumatra Indonesia Tbk'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.


PT PP London Sumatra Indonesia Tbk's Financial Strength Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, PT PP London Sumatra Indonesia Tbk's Financial Strength distribution charts can be found below:

* The bar in red indicates where PT PP London Sumatra Indonesia Tbk's Financial Strength falls into.



PT PP London Sumatra Indonesia Tbk 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:

PT PP London Sumatra Indonesia Tbk's Interest Expense for the months ended in Mar. 2024 was Rp-201 Mil. Its Operating Income for the months ended in Mar. 2024 was Rp232,216 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was Rp2,242 Mil.

PT PP London Sumatra Indonesia Tbk'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*232216/-201
=1,155.30

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. PT PP London Sumatra Indonesia Tbk has enough cash to cover all of its debt. Its financial situation is stable.

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

PT PP London Sumatra Indonesia Tbk'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
=(5015 + 2242) / 3517860
=0.00

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.

PT PP London Sumatra Indonesia Tbk has a Z-score of 5.03, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 5.03 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.


PT PP London Sumatra Indonesia Tbk  (ISX:LSIP) 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.

PT PP London Sumatra Indonesia Tbk has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.


PT PP London Sumatra Indonesia Tbk Financial Strength Related Terms

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PT PP London Sumatra Indonesia Tbk (ISX:LSIP) Business Description

Traded in Other Exchanges
Address
Jalan HR. Rasuna Said Blok X-2 Kavling 5, 12th Floor, Ariobimo Sentral Building, Kuningan Timur, South Jakarta, Jakarta, IDN, 12950
PT PP London Sumatra Indonesia Tbk is engaged in plant breeding, planting, harvesting, processing, and the selling of palm products, rubber, oil palm seeds, cocoa, and tea. The company's operating segments are Oil Palm Products, Rubber, Seeds, and others. It generates a majority of its revenue from the oil palm products segment.

PT PP London Sumatra Indonesia Tbk (ISX:LSIP) Headlines

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