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Synergy Green Industries (NSE:SGIL) Financial Strength : 5 (As of Dec. 2023)


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What is Synergy Green Industries Financial Strength?

Synergy Green Industries has the Financial Strength Rank of 5.

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.

Synergy Green Industries's Interest Coverage for the quarter that ended in Dec. 2023 was 1.98. Synergy Green Industries's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.00. As of today, Synergy Green Industries's Altman Z-Score is 4.18.


Competitive Comparison of Synergy Green Industries's Financial Strength

For the Metal Fabrication subindustry, Synergy Green Industries'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.


Synergy Green Industries's Financial Strength Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Synergy Green Industries's Financial Strength distribution charts can be found below:

* The bar in red indicates where Synergy Green Industries's Financial Strength falls into.



Synergy Green Industries 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:

Synergy Green Industries's Interest Expense for the months ended in Dec. 2023 was ₹-33 Mil. Its Operating Income for the months ended in Dec. 2023 was ₹66 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was ₹0 Mil.

Synergy Green Industries'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*66.309/-33.482
=1.98

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

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

Synergy Green Industries'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
=(0 + 0) / 3528.68
=0.00

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.

Synergy Green Industries has a Z-score of 4.18, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.18 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.


Synergy Green Industries  (NSE:SGIL) 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.

Synergy Green Industries has the Financial Strength Rank of 5.


Synergy Green Industries Financial Strength Related Terms

Thank you for viewing the detailed overview of Synergy Green Industries's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Synergy Green Industries (NSE:SGIL) Business Description

Traded in Other Exchanges
Address
392, E Ward, Assembly Road, Shahupuri Post Box No. 201, Kolhapur, MH, IND, 416001
Synergy Green Industries Ltd is engaged in the business of foundry i.e. manufacturing of wind turbine casting and other large precision castings. The company generates maximum revenue from the sale of Windmill Castings. Products offered by the company include gearbox housing, hub, front wheel, main foundation, base frame, main axle, hollow shaft, DV- casing, diffuser, rear wheel, wedge, cannon tube, and others.

Synergy Green Industries (NSE:SGIL) Headlines

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