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Silicon2 Co (XKRX:257720) Financial Strength : 7 (As of Mar. 2024)


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What is Silicon2 Co Financial Strength?

Silicon2 Co has the Financial Strength Rank of 7.

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.

Silicon2 Co's Interest Coverage for the quarter that ended in Mar. 2024 was 55.54. Silicon2 Co's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.19. As of today, Silicon2 Co's Altman Z-Score is 12.08.


Competitive Comparison of Silicon2 Co's Financial Strength

For the Household & Personal Products subindustry, Silicon2 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.


Silicon2 Co's Financial Strength Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Silicon2 Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Silicon2 Co's Financial Strength falls into.



Silicon2 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:

Silicon2 Co's Interest Expense for the months ended in Mar. 2024 was ₩-530 Mil. Its Operating Income for the months ended in Mar. 2024 was ₩29,449 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ₩7,761 Mil.

Silicon2 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*29449.231/-530.257
=55.54

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

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

Silicon2 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
=(108235.739 + 7760.738) / 599708.692
=0.19

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.

Silicon2 Co has a Z-score of 12.08, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 12.08 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.


Silicon2 Co  (XKRX:257720) 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.

Silicon2 Co has the Financial Strength Rank of 7.


Silicon2 Co Financial Strength Related Terms

Thank you for viewing the detailed overview of Silicon2 Co's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Silicon2 Co (XKRX:257720) Business Description

Traded in Other Exchanges
N/A
Address
Room S 907, H Square, 231, Pangyoyeok-ro, Bundang-gu, Gyeonggi-Do, Seongnam-si, KOR
Silicon2 Co Ltd is engaged in the sale of beauty and skin products through its brand Style Korean. Its products consist of Water Sleeping Mask, Ginseng Essence Water, Aloe Soothing suncream, Repair Serum, and Hydrum Watery Toner among others.

Silicon2 Co (XKRX:257720) Headlines

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