Woori Financial Group (XKRX:316140) Financial Strength : 2 (As of Mar. 2024)

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What is Woori Financial Group Financial Strength?

Woori Financial Group 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.

Warning Sign:

Woori Financial Group Inc displays poor financial strength. 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.

GuruFocus does not calculate Woori Financial Group's interest coverage with the available data. Woori Financial Group's debt to revenue ratio for the quarter that ended in Mar. 2024 was 6.20. Altman Z-Score does not apply to banks and insurance companies.

Woori Financial Group 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:

Woori Financial Group's Interest Expense for the months ended in Mar. 2024 was ₩-3,271,298 Mil. Its Operating Income for the months ended in Mar. 2024 was ₩0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ₩75,903,090 Mil.

Woori Financial Group's Interest Coverage for the quarter that ended in Mar. 2024 is

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

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

Woori Financial Group'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
	=	(0	+	75903090)	/	12244100
	=	6.20

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.

Altman Z-Score does not apply to banks and insurance companies.

* 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.

Woori Financial Group (XKRX:316140) 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.

Woori Financial Group 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.

Woori Financial Group Financial Strength Related Terms

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Woori Financial Group (XKRX:316140) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Woori Financial Group Inc (XKRX:316140) » Definitions » Financial Strength

Traded in Other Exchanges

WF:USA

Address

51, Sogong-ro, Jung-gu, Seoul, KOR, 04632

Website

https://www.woorifg.com

Woori is one of Korea's four largest commercial banking groups. It was formed in 2001 through the merger of several financially troubled banks affected by the Asian financial crisis and became temporarily 100% government-owned after a bailout. It had been the largest banking group by assets but is now number four after the government required the sale of a number of subsidiaries in 2014 in an effort to recoup taxpayer money. The government has completed the process of fully divesting itself of Woori, with Korea Deposit Insurance selling its final 1.2% stake in late 2023.