What is Oceania Healthcare Financial Strength?
Oceania Healthcare has the Financial Strength Rank of 1. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Oceania Healthcare 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.
Oceania Healthcare did not have earnings to cover the interest expense.
Oceania Healthcare's debt to revenue ratio for the quarter that ended in Sep. 2023 was 2.37.
As of today, Oceania Healthcare's Altman Z-Score is -0.09.
Competitive Comparison of Oceania Healthcare's Financial Strength
For the Medical Care Facilities subindustry, Oceania Healthcare'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.
Oceania Healthcare's Financial Strength Distribution in the Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Oceania Healthcare's Financial Strength distribution charts can be found below:
* The bar in red indicates where Oceania Healthcare's Financial Strength falls into.
Oceania Healthcare 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:
Oceania Healthcare's Interest Expense for the
months ended in Sep. 2023 was NZ$-8.6 Mil. Its Operating Income for the
months ended in Sep. 2023 was NZ$-4.3 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was NZ$623.1 Mil.
Oceania Healthcare's Interest Coverage for the quarter that ended in Sep. 2023 is
| Oceania Healthcare did not have earnings to cover the interest expense. |
The higher the ratio, the stronger the company's financial strength is.
2. Debt to revenue ratio. The lower, the better.
Oceania Healthcare's Debt to Revenue Ratio for the quarter that ended in Sep. 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.
Oceania Healthcare has a Z-score of -0.09, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of -0.09 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.
Oceania Healthcare (NZSE:OCA) Business Description
Traded in Other Exchanges
Address
80 Queen Street, Level 11, Deloitte Building, Auckland, NTL, NZL, 1010
Oceania Healthcare Ltd owns and operates rest homes and retirement villages. The business activities of the group are operated through care operations, village operations, and Other segments. It generates maximum revenue from the care operations segment which includes traditional care beds and care suites as well as provision of accommodation, care and care packages, meals, and related services to aged care residents. Geographically it operates through New Zealand. The company derives revenue from Rest home, hospital, dementia fees, Village service fees, Rental income, and others.
Oceania Healthcare (NZSE:OCA) Headlines
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