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Poly Property Group Co (Poly Property Group Co) Financial Strength : 4 (As of Dec. 2023)


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What is Poly Property Group Co Financial Strength?

Poly Property Group 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.

Poly Property Group Co's Interest Coverage for the quarter that ended in Dec. 2023 was 3.36. Poly Property Group Co's debt to revenue ratio for the quarter that ended in Dec. 2023 was 1.47. As of today, Poly Property Group Co's Altman Z-Score is 0.86.


Competitive Comparison of Poly Property Group Co's Financial Strength

For the Real Estate - Development subindustry, Poly Property Group 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.


Poly Property Group Co's Financial Strength Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Poly Property Group Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Poly Property Group Co's Financial Strength falls into.



Poly Property Group 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:

Poly Property Group Co's Interest Expense for the months ended in Dec. 2023 was $-108 Mil. Its Operating Income for the months ended in Dec. 2023 was $365 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $7,467 Mil.

Poly Property Group Co'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*364.551/-108.425
=3.36

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

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

Poly Property Group Co'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
=(2912.339 + 7467.439) / 7084.746
=1.47

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.

Poly Property Group Co has a Z-score of 0.86, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.86 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.


Poly Property Group Co  (OTCPK:PHKIF) 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.

Poly Property Group Co has the Financial Strength Rank of 4.


Poly Property Group Co Financial Strength Related Terms

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Poly Property Group Co (Poly Property Group Co) Business Description

Traded in Other Exchanges
Address
18 Harcourt Road, Room 2503, Admiralty Centre, Tower 1, Hong Kong, HKG
Poly Property Group Co Ltd is a real estate company. The company is organized into four segments; Property Development, Property Investment, Hotel Operations, and Others. The Property Development segment is its major focus area and accounts for most of the company's revenues. The property Investment and Management segment is engaged in property investment and management. The Hotel Operations segment deals with hotel and restaurant businesses and the Other Operations segment is engaged in the manufacture and sales of digital discs and others.

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