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United Urban Investment (TSE:8960) Financial Strength : 3 (As of May. 2023)


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What is United Urban Investment Financial Strength?

United Urban Investment 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.

Warning Sign:

United Urban Investment Corp 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.

United Urban Investment's Interest Coverage for the quarter that ended in May. 2023 was 11.35. United Urban Investment's debt to revenue ratio for the quarter that ended in May. 2023 was 6.39. As of today, United Urban Investment's Altman Z-Score is 0.99.


Competitive Comparison of United Urban Investment's Financial Strength

For the REIT - Diversified subindustry, United Urban Investment'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.


United Urban Investment's Financial Strength Distribution in the REITs Industry

For the REITs industry and Real Estate sector, United Urban Investment's Financial Strength distribution charts can be found below:

* The bar in red indicates where United Urban Investment's Financial Strength falls into.



United Urban Investment 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:

United Urban Investment's Interest Expense for the months ended in May. 2023 was 円-960 Mil. Its Operating Income for the months ended in May. 2023 was 円10,903 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in May. 2023 was 円277,803 Mil.

United Urban Investment's Interest Coverage for the quarter that ended in May. 2023 is

Interest Coverage=-1*Operating Income (Q: May. 2023 )/Interest Expense (Q: May. 2023 )
=-1*10903.299/-960.31
=11.35

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

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

United Urban Investment's Debt to Revenue Ratio for the quarter that ended in May. 2023 is

Debt to Revenue Ratio=Total Debt (Q: May. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(42600 + 277803) / 50105.036
=6.39

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.

United Urban Investment has a Z-score of 0.99, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.99 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.


United Urban Investment  (TSE:8960) 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.

United Urban Investment 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.


United Urban Investment Financial Strength Related Terms

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United Urban Investment (TSE:8960) Business Description

Traded in Other Exchanges
N/A
Address
4-3-1 Toranomon, Minato-ku, Tokyo, JPN, 105-0001
United Urban Investment Corp is a real estate investment trust. The company invests in real estates such as retail properties, office buildings, hotels, residential properties and others. The company's primary objective is to secure steady earnings over the medium to long term through investment in varied both in types of use and geographical location. The company invests in real estates located in the Tokyo metropolitan area and other cities in Japan including government-designated cities, and surrounding areas thereof.

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