What is Scentre Group Financial Strength?
Scentre Group 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:
Scentre Group 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.
Scentre Group's Interest Coverage for the quarter that ended in Dec. 2023 was 2.87.
Scentre Group's debt to revenue ratio for the quarter that ended in Dec. 2023 was 6.23.
As of today, Scentre Group's Altman Z-Score is 0.92.
Competitive Comparison of Scentre Group's Financial Strength
For the REIT - Retail subindustry, Scentre Group'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.
Scentre Group's Financial Strength Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Scentre Group's Financial Strength distribution charts can be found below:
* The bar in red indicates where Scentre Group's Financial Strength falls into.
Scentre Group 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:
Scentre Group's Interest Expense for the
months ended in Dec. 2023 was A$-289 Mil. Its Operating Income for the
months ended in Dec. 2023 was A$831 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was A$13,866 Mil.
Scentre Group's Interest Coverage for the quarter that ended in Dec. 2023 is
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Scentre Group interest coverage is 2.63, which is low.
2. Debt to revenue ratio. The lower, the better.
Scentre Group's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is
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.
Scentre Group has a Z-score of 0.92, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 0.92 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.
Scentre Group (ASX:SCG) Business Description
Traded in Other Exchanges
Address
85 Castlereagh Street, Level 30, Sydney, NSW, AUS, 2000
Scentre Group owns the largest portfolio of premium Australian and New Zealand shopping malls, owning most of the top 10 Australian and top five New Zealand malls. About half its rent comes from anchor tenants and half from specialty tenants. About a third of floor space is currently allocated to department stores, however we expect tenants to return a reasonable portion of that space over the next decade, or alternatively, department store rent to be renegotiated to lower levels. While almost every Scentre mall is anchored by at least one supermarket, these tenants accounts for less than 10% of gross lettable area, due to the large size of Scentre's assets.
Scentre Group (ASX:SCG) Headlines
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
ASX:SCG has been successfully added to your