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Alandalus Property Co (SAU:4320) Financial Strength : 3 (As of Mar. 2024)


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What is Alandalus Property Co Financial Strength?

Alandalus Property Co has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. 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.

Alandalus Property Co's Interest Coverage for the quarter that ended in Mar. 2024 was 1.41. Alandalus Property Co's debt to revenue ratio for the quarter that ended in Mar. 2024 was 4.43. As of today, Alandalus Property Co's Altman Z-Score is 1.76.


Competitive Comparison of Alandalus Property Co's Financial Strength

For the Real Estate Services subindustry, Alandalus Property 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.


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

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

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



Alandalus Property 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:

Alandalus Property Co's Interest Expense for the months ended in Mar. 2024 was ﷼-15.1 Mil. Its Operating Income for the months ended in Mar. 2024 was ﷼21.4 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ﷼915.8 Mil.

Alandalus Property 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*21.415/-15.146
=1.41

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

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

Alandalus Property 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
=(22.745 + 915.75) / 211.984
=4.43

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.

Alandalus Property Co has a Z-score of 1.76, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.76 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.


Alandalus Property Co  (SAU:4320) 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.

Alandalus Property Co has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Alandalus Property Co Financial Strength Related Terms

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Alandalus Property Co (SAU:4320) Business Description

Traded in Other Exchanges
N/A
Address
Northern Ring Branch Road, Al-Andalus Property Company Building, P.O. Box 260020, Al Wadi District, Riyadh, SAU, 11342
Alandalus Property Co is a real estate development company based in Saudi Arabia. Its activities include construction, ownership, and management of centres, commercial and residential complexes, contracting of residential, commercial buildings, educational, recreational, health institutions, roads, dams, water and sewage projects, electrical and mechanical works. The company operates in three sectors. The Retail sector, which is the key revenue generator, includes leasing rental units of investment properties such as malls; the Hospitality sector includes hospitality service providing entities; and the office sector. Its projects include Al Andalus Mall, Hayat Mall, Dareen Mall, Sahafa Center, Tilal Center, and Yarmouk Center among others under development and Office Sector.

Alandalus Property Co (SAU:4320) Headlines

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