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Lever Style (HKSE:01346) Financial Strength : 10 (As of Dec. 2023)


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What is Lever Style Financial Strength?

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

Good Sign:

Lever Style Corp 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.

Lever Style's Interest Coverage for the quarter that ended in Dec. 2023 was 153.92. Lever Style's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.01. As of today, Lever Style's Altman Z-Score is 5.59.


Competitive Comparison of Lever Style's Financial Strength

For the Apparel Manufacturing subindustry, Lever Style'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.


Lever Style's Financial Strength Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Lever Style's Financial Strength distribution charts can be found below:

* The bar in red indicates where Lever Style's Financial Strength falls into.



Lever Style 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:

Lever Style's Interest Expense for the months ended in Dec. 2023 was HK$-1 Mil. Its Operating Income for the months ended in Dec. 2023 was HK$87 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was HK$5 Mil.

Lever Style's Interest Coverage for the quarter that ended in Dec. 2023 is

Interest Coverage=-1*Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*86.501/-0.562
=153.92

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. Lever Style Corp has enough cash to cover all of its debt. Its financial situation is stable.

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

Lever Style's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(7.622 + 5.381) / 1691.946
=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.

Lever Style has a Z-score of 5.59, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 5.59 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.


Lever Style  (HKSE:01346) 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.

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


Lever Style Financial Strength Related Terms

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Lever Style (HKSE:01346) Business Description

Traded in Other Exchanges
N/A
Address
12 Hing Yip Street, Wing Tai Centre, 7th Floor, Room 76, Flat A, Kwun Tong, Kowloon, Hong Kong, HKG
Lever Style Corp engages in apparel manufacturing. The firm offers a wide range of product categories for both men and women. Its product line comprises shirts, bottoms, suits, outwear, and other products out of which sale of shirts derives the majority revenue. Geographically, the United States of America contributes majority of the firm's revenue.
Executives
Imaginative Company Limited 2201 Interest of corporation controlled by you
Lever Style Holdings Limited 2101 Beneficial owner
Szeto Chi Yan Stanley 2201 Interest of corporation controlled by you
Fung Capital Limited 2201 Interest of corporation controlled by you
Hsbc Trustee (c.i.) Limited 2301 Trustee
Fung Portfolio Limited 2201 Interest of corporation controlled by you
Fung Kwok Lun William 2201 Interest of corporation controlled by you
Jing Lun Kong Gu You Xian Gong Si 2201 Interest of corporation controlled by you
Feng Shi Tou Zi You Xian Gong Si 2201 Interest of corporation controlled by you
Poolside Ventures Limited 2201 Interest of corporation controlled by you
Kci Limited 2201 Interest of corporation controlled by you
Fung Trinity Holdings Limited 2101 Beneficial owner
Fong Tong 2201 Interest of corporation controlled by you

Lever Style (HKSE:01346) Headlines

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