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Sailani Tours N Travels (BOM:543541) Financial Strength : 8 (As of Sep. 2023)


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What is Sailani Tours N Travels Financial Strength?

Sailani Tours N Travels has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Sailani Tours N Travels Ltd 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.

Sailani Tours N Travels's Interest Coverage for the quarter that ended in Sep. 2023 was 8.05. Sailani Tours N Travels's debt to revenue ratio for the quarter that ended in Sep. 2023 was 0.04. As of today, Sailani Tours N Travels's Altman Z-Score is 5.72.


Competitive Comparison of Sailani Tours N Travels's Financial Strength

For the Travel Services subindustry, Sailani Tours N Travels'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.


Sailani Tours N Travels's Financial Strength Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Sailani Tours N Travels's Financial Strength distribution charts can be found below:

* The bar in red indicates where Sailani Tours N Travels's Financial Strength falls into.



Sailani Tours N Travels 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:

Sailani Tours N Travels's Interest Expense for the months ended in Sep. 2023 was ₹-0.3 Mil. Its Operating Income for the months ended in Sep. 2023 was ₹2.7 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was ₹0.0 Mil.

Sailani Tours N Travels's Interest Coverage for the quarter that ended in Sep. 2023 is

Interest Coverage=-1*Operating Income (Q: Sep. 2023 )/Interest Expense (Q: Sep. 2023 )
=-1*2.744/-0.341
=8.05

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

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

Sailani Tours N Travels's Debt to Revenue Ratio for the quarter that ended in Sep. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(12.462 + 0) / 316.708
=0.04

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.

Sailani Tours N Travels has a Z-score of 5.72, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 5.72 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.


Sailani Tours N Travels  (BOM:543541) 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.

Sailani Tours N Travels has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.


Sailani Tours N Travels Financial Strength Related Terms

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Sailani Tours N Travels (BOM:543541) Business Description

Traded in Other Exchanges
N/A
Address
AD-62, Sector 1, Ground Floor, Salt Lake City, Bhidannagar, Kolkata, WB, IND, 700064
Sailani Tours n Travels Ltd operates as a travel company catering to the overall travel needs of Indian and International travelers in the state of Kolkata. Its business is categorized as Leisure Travel, Corporate Travel, Forex, and Visa Processing. It designs travel packages for both individuals and groups for their domestic and international leisure travel. The company provides end-to-end travel solutions including land, air, and cruise bookings, hotel bookings, in-transit arrangements, local sightseeing, visa, passport and medical insurance assistance, and other destination management services. It also provides travel-related foreign exchange & payment solutions.

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