What is Kowloon Development Co Financial Strength?
Kowloon Development Co has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Kowloon Development Co Ltd 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.
Kowloon Development Co's Interest Coverage for the quarter that ended in Jun. 2023 was 4.39.
Kowloon Development Co's debt to revenue ratio for the quarter that ended in Jun. 2023 was 8.89.
As of today, Kowloon Development Co's Altman Z-Score is 0.87.
Competitive Comparison of Kowloon Development Co's Financial Strength
For the Real Estate - Development subindustry, Kowloon Development Co'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.
Kowloon Development Co's Financial Strength Distribution in the Real Estate Industry
For the Real Estate industry and Real Estate sector, Kowloon Development Co's Financial Strength distribution charts can be found below:
* The bar in red indicates where Kowloon Development Co's Financial Strength falls into.
Kowloon Development Co 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:
Kowloon Development Co's Interest Expense for the
months ended in Jun. 2023 was HK$-95 Mil. Its Operating Income for the
months ended in Jun. 2023 was HK$417 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2023 was HK$2,542 Mil.
Kowloon Development Co's Interest Coverage for the quarter that ended in Jun. 2023 is
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. Kowloon Development Co Ltd interest coverage is 3.8, which is low.
2. Debt to revenue ratio. The lower, the better.
Kowloon Development Co's Debt to Revenue Ratio for the quarter that ended in Jun. 2023 is
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.
Kowloon Development Co has a Z-score of 0.87, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 0.87 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.
Kowloon Development Co (HKSE:00034) Business Description
Traded in Other Exchanges
Address
750 Nathan Road, 23rd Floor, Pioneer Centre, Kowloon, Hong Kong, HKG
Kowloon Development Co Ltd is an investment holding company. It operates in three segments: Property development, which includes the development and sale of properties and interests in property development; Property investment segment includes leasing of properties to generate rental income and to gain from the appreciation in the properties' values in the long term; and Other businesses segment, which includes the financial investments, the provision of financial services, the provision of property management services and treasury operations. The company generates the majority of its revenue from the sale of properties. Its geographical segments are Hong Kong, which accounts for the majority of revenue; Mainland China; and Others.
Executives
Kowloon Development Co (HKSE:00034) Headlines
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