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East Buy Holding (FRA:KTD) Financial Strength : 10 (As of Nov. 2023)


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What is East Buy Holding Financial Strength?

East Buy Holding has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

East Buy Holding 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.

East Buy Holding's Interest Coverage for the quarter that ended in Nov. 2023 was 286.43. East Buy Holding's debt to revenue ratio for the quarter that ended in Nov. 2023 was 0.01. As of today, East Buy Holding's Altman Z-Score is 12.33.


Competitive Comparison of East Buy Holding's Financial Strength

For the Education & Training Services subindustry, East Buy Holding'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.


East Buy Holding's Financial Strength Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, East Buy Holding's Financial Strength distribution charts can be found below:

* The bar in red indicates where East Buy Holding's Financial Strength falls into.



East Buy Holding 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:

East Buy Holding's Interest Expense for the months ended in Nov. 2023 was €-0.2 Mil. Its Operating Income for the months ended in Nov. 2023 was €44.4 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Nov. 2023 was €2.7 Mil.

East Buy Holding's Interest Coverage for the quarter that ended in Nov. 2023 is

Interest Coverage=-1*Operating Income (Q: Nov. 2023 )/Interest Expense (Q: Nov. 2023 )
=-1*44.396/-0.155
=286.43

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. East Buy Holding Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

East Buy Holding's Debt to Revenue Ratio for the quarter that ended in Nov. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Nov. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(3.193 + 2.661) / 715.15
=0.01

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.

East Buy Holding has a Z-score of 12.33, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 12.33 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.


East Buy Holding  (FRA:KTD) 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.

East Buy Holding has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.


East Buy Holding Financial Strength Related Terms

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East Buy Holding (FRA:KTD) Business Description

Traded in Other Exchanges
Address
2 Haidian East Third Road, Level 18, South Wing, Haidian District, Beijing, CHN, 100080
East Buy Holding Ltd is a live-streaming platform that focuses on selecting premium products for customers. The company operates in three reportable segments which include Private Label Products and Livestreaming E-Commerce, College Education, and Institutional Customers. The majority of its revenue comes from private label products and direct e-commerce segment, i.e. direct online commerce with private label products sold to individual customers and providing services. commission service.

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