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Hub Power Co (KAR:HUBC) Financial Strength : 4 (As of Mar. 2024)


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What is Hub Power Co Financial Strength?

Hub Power Co has the Financial Strength Rank of 4.

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.

Hub Power Co's Interest Coverage for the quarter that ended in Mar. 2024 was 2.55. Hub Power Co's debt to revenue ratio for the quarter that ended in Mar. 2024 was 1.11. As of today, Hub Power Co's Altman Z-Score is 2.23.


Competitive Comparison of Hub Power Co's Financial Strength

For the Utilities - Independent Power Producers subindustry, Hub Power 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.


Hub Power Co's Financial Strength Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Hub Power Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Hub Power Co's Financial Strength falls into.



Hub Power 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:

Hub Power Co's Interest Expense for the months ended in Mar. 2024 was ₨-6,209 Mil. Its Operating Income for the months ended in Mar. 2024 was ₨15,816 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ₨91,837 Mil.

Hub Power Co's Interest Coverage for the quarter that ended in Mar. 2024 is

Interest Coverage=-1*Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*15816.429/-6209.191
=2.55

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

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

Hub Power Co'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
=(48953.556 + 91837.425) / 127164.128
=1.11

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.

Hub Power Co has a Z-score of 2.23, indicating it is in Grey Zones. This implies that Hub Power Co is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.23 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* 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.


Hub Power Co  (KAR:HUBC) 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.

Hub Power Co has the Financial Strength Rank of 4.


Hub Power Co Financial Strength Related Terms

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Hub Power Co (KAR:HUBC) Business Description

Traded in Other Exchanges
N/A
Address
G-3, Block-9, Main Clifton Road, P.O. Box No. 13841, 9th Floor, Ocean Tower, Karachi, PAK, 75600
Hub Power Co Ltd is a part of the energy sector in Pakistan. It is the independent power producers that supplies reliable and uninterrupted electricity to the National grid. The company has four segments, which are power generation business, which includes the Hub plant, Narowal plant, Laraib plant & Thar plant, operations and maintenance business and investments in CPHGC, TEL, TNPTL, SECMC, Prime and CPHO. The company derives the majority of its revenue through the Hub, and thar plant segment, which deals with the generation of power.

Hub Power Co (KAR:HUBC) Headlines

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