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Narumiya International Co (TSE:9275) Financial Strength : 6 (As of Feb. 2024)


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What is Narumiya International Co Financial Strength?

Narumiya International Co has the Financial Strength Rank of 6.

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.

Narumiya International Co's Interest Coverage for the quarter that ended in Feb. 2024 was 65.80. Narumiya International Co's debt to revenue ratio for the quarter that ended in Feb. 2024 was 0.07. As of today, Narumiya International Co's Altman Z-Score is 4.71.


Competitive Comparison of Narumiya International Co's Financial Strength

For the Apparel Manufacturing subindustry, Narumiya International 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.


Narumiya International Co's Financial Strength Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Narumiya International Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Narumiya International Co's Financial Strength falls into.



Narumiya International 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:

Narumiya International Co's Interest Expense for the months ended in Feb. 2024 was 円-10 Mil. Its Operating Income for the months ended in Feb. 2024 was 円652 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Feb. 2024 was 円2,040 Mil.

Narumiya International Co's Interest Coverage for the quarter that ended in Feb. 2024 is

Interest Coverage=-1*Operating Income (Q: Feb. 2024 )/Interest Expense (Q: Feb. 2024 )
=-1*651.549/-9.902
=65.80

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

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

Narumiya International Co's Debt to Revenue Ratio for the quarter that ended in Feb. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Feb. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(930.723 + 2039.86) / 44384.756
=0.07

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.

Narumiya International Co has a Z-score of 4.71, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.71 is strong.

* 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.


Narumiya International Co  (TSE:9275) 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.

Narumiya International Co has the Financial Strength Rank of 6.


Narumiya International Co Financial Strength Related Terms

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Narumiya International Co (TSE:9275) Business Description

Traded in Other Exchanges
N/A
Address
2-4-1 Shibakouen, Minato-ku, Shiba Park, Building B, 9th Floor, Tokyo, JPN, 105-0011
Narumiya International Co Ltd is a Japanese company operating in the apparel industry. The company manufactures and sells children's clothing and related products including baby products. It operates more than 700 stores in Japan. Its brands include ANNA SUI Mini, Kate Spade New York, Mezzo piano, X Girl Stages, Extra Large Kids, Clade Scope, Pettimain, Beer room, Sense of Wonder, Love & Piece & Money, Baby Cheer, Kirin's Sophie, Pupil House, and many more.

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