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Millenniumpthorne Hotels New Zealand (NZSE:MCK) Financial Strength : 8 (As of Dec. 2023)


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What is Millenniumpthorne Hotels New Zealand Financial Strength?

Millenniumpthorne Hotels New Zealand has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Millennium & Copthorne Hotels New Zealand 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.

Millenniumpthorne Hotels New Zealand's Interest Coverage for the quarter that ended in Dec. 2023 was 13.36. Millenniumpthorne Hotels New Zealand's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.23. As of today, Millenniumpthorne Hotels New Zealand's Altman Z-Score is 2.35.


Competitive Comparison of Millenniumpthorne Hotels New Zealand's Financial Strength

For the Lodging subindustry, Millenniumpthorne Hotels New Zealand'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.


Millenniumpthorne Hotels New Zealand's Financial Strength Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Millenniumpthorne Hotels New Zealand's Financial Strength distribution charts can be found below:

* The bar in red indicates where Millenniumpthorne Hotels New Zealand's Financial Strength falls into.



Millenniumpthorne Hotels New Zealand 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:

Millenniumpthorne Hotels New Zealand's Interest Expense for the months ended in Dec. 2023 was NZ$-1.4 Mil. Its Operating Income for the months ended in Dec. 2023 was NZ$18.7 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was NZ$27.1 Mil.

Millenniumpthorne Hotels New Zealand'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*18.692/-1.399
=13.36

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

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

Millenniumpthorne Hotels New Zealand'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
=(12.183 + 27.111) / 171.216
=0.23

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.

Millenniumpthorne Hotels New Zealand has a Z-score of 2.35, indicating it is in Grey Zones. This implies that Millenniumpthorne Hotels New Zealand 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 2.35 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.


Millenniumpthorne Hotels New Zealand  (NZSE:MCK) 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.

Millenniumpthorne Hotels New Zealand has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.


Millenniumpthorne Hotels New Zealand Financial Strength Related Terms

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Millenniumpthorne Hotels New Zealand (NZSE:MCK) Business Description

Traded in Other Exchanges
Address
23 Customs Street East, Victoria Street West, Level 7, PO Box 5640,, Auckland, NZL, 1142
Millennium & Copthorne Hotels New Zealand Ltd is engaged in the ownership and operation of hotels in New Zealand. In addition, the group is also involved in the residential development and sale of land in New Zealand and the development and sale of residential units in Australia. The operating segments of the group are Hotel operations which comprise income from the ownership and management of hotels, Residential land development, comprising the development and sale of land and Residential and commercial property development, comprising the development and sale of residential apartments. The majority of the revenue is generated from the Hotel operations segment. The company operates in the geographical areas of New Zealand and Australia.