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KWI PCL (BKK:KWI) Financial Strength : 2 (As of Mar. 2024)


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What is KWI PCL Financial Strength?

KWI 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:

KWI 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.

KWI PCL did not have earnings to cover the interest expense. KWI PCL's debt to revenue ratio for the quarter that ended in Mar. 2024 was 3.19. As of today, KWI PCL's Altman Z-Score is -0.45.


Competitive Comparison of KWI PCL's Financial Strength

For the Insurance - Diversified subindustry, KWI 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.


KWI PCL's Financial Strength Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, KWI PCL's Financial Strength distribution charts can be found below:

* The bar in red indicates where KWI PCL's Financial Strength falls into.



KWI 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:

KWI PCL's Interest Expense for the months ended in Mar. 2024 was ฿-44 Mil. Its Operating Income for the months ended in Mar. 2024 was ฿-292 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ฿1,728 Mil.

KWI PCL's Interest Coverage for the quarter that ended in Mar. 2024 is

KWI PCL did not have earnings to cover the interest expense.

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

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

KWI 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
=(2350.591 + 1727.712) / 1279.276
=3.19

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.

KWI PCL has a Z-score of -0.45, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of -0.45 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.


KWI PCL  (BKK:KWI) 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.

KWI 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.


KWI PCL Financial Strength Related Terms

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KWI PCL (BKK:KWI) Business Description

Traded in Other Exchanges
N/A
Address
138/108 Nares Road, 30th Floor, Jewellery Centre Building, Sipraya Sub-District, Bang Rak District, Bangkok, THA, 10500
KWI PCL is engaged in diverse range of businesses throughout Greater China and Southeast Asia. The principal businesses of the group are general insurance, life insurance, mutual fund management and real estate development where business synergies are created to offer personal and business customers from home building and daily protection to lifelong protection, and wealth management. The company constantly search for new opportunities that will strengthen existing businesses and further promote the synergies between businesses to achieve its goal which is to provide the sustainable maximum returns for stakeholders.

KWI PCL (BKK:KWI) Headlines

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