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Bangkok Commercial Asset Management PCL (BKK:BAM) Financial Strength : 2 (As of Mar. 2024)


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What is Bangkok Commercial Asset Management PCL Financial Strength?

Bangkok Commercial Asset Management PCL 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:

Bangkok Commercial Asset Management PCL 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.

Bangkok Commercial Asset Management PCL's Interest Coverage for the quarter that ended in Mar. 2024 was 1.15. Bangkok Commercial Asset Management PCL's debt to revenue ratio for the quarter that ended in Mar. 2024 was 8.54. As of today, Bangkok Commercial Asset Management PCL's Altman Z-Score is 1.47.


Competitive Comparison of Bangkok Commercial Asset Management PCL's Financial Strength

For the Asset Management subindustry, Bangkok Commercial Asset Management PCL'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.


Bangkok Commercial Asset Management PCL's Financial Strength Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Bangkok Commercial Asset Management PCL's Financial Strength distribution charts can be found below:

* The bar in red indicates where Bangkok Commercial Asset Management PCL's Financial Strength falls into.



Bangkok Commercial Asset Management PCL 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:

Bangkok Commercial Asset Management PCL's Interest Expense for the months ended in Mar. 2024 was ฿-655 Mil. Its Operating Income for the months ended in Mar. 2024 was ฿751 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ฿64,621 Mil.

Bangkok Commercial Asset Management PCL'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*751.214/-655
=1.15

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

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Bangkok Commercial Asset Management PCLs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

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

Bangkok Commercial Asset Management PCL'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
=(25229 + 64620.669) / 10516.772
=8.54

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.

Bangkok Commercial Asset Management PCL has a Z-score of 1.47, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.47 is in distress zone. This implies bankruptcy 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.


Bangkok Commercial Asset Management PCL  (BKK:BAM) 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.

Bangkok Commercial Asset Management PCL 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.


Bangkok Commercial Asset Management PCL Financial Strength Related Terms

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Bangkok Commercial Asset Management PCL (BKK:BAM) Business Description

Traded in Other Exchanges
N/A
Address
99 Surasak Road, Silom Subdistrict, Bangrak District, Bangkok, THA, 10500
Bangkok Commercial Asset Management PCL engages in purchasing or receiving a transfer of non-performing loans and non-performing assets for the management or for further disposal or transfer. The company provides a mechanism for the government to resolve non-performing loans of the financial institution system by purchasing and receiving a transfer of such assets from financial institutions for further management through debt restructuring and disposal of NPAs with proper quality to interested parties at fair prices. Geographically, it operates only in Thailand.