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Scully Royalty (Scully Royalty) Financial Strength

: 6 (As of Jun. 2023)
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Scully Royalty 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.

Scully Royalty's Interest Coverage for the quarter that ended in Jun. 2023 was 5.82. Scully Royalty's debt to revenue ratio for the quarter that ended in Jun. 2023 was 0.81. As of today, Scully Royalty's Altman Z-Score is 0.79.


Competitive Comparison

For the Capital Markets subindustry, Scully Royalty'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.


Scully Royalty Financial Strength Distribution

For the Capital Markets industry and Financial Services sector, Scully Royalty's Financial Strength distribution charts can be found below:

* The bar in red indicates where Scully Royalty's Financial Strength falls into.



Scully Royalty 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:

Scully Royalty's Interest Expense for the months ended in Jun. 2023 was $-0.71 Mil. Its Operating Income for the months ended in Jun. 2023 was $4.12 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2023 was $32.43 Mil.

Scully Royalty's Interest Coverage for the quarter that ended in Jun. 2023 is

Interest Coverage=-1*Operating Income (Q: Jun. 2023 )/Interest Expense (Q: Jun. 2023 )
=-1*4.122/-0.708
=5.82

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

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

Scully Royalty's Debt to Revenue Ratio for the quarter that ended in Jun. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 32.425) / 39.9
=0.81

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.

Scully Royalty has a Z-score of 0.79, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.79 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.


Scully Royalty  (NYSE:SRL) 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.

Scully Royalty has the Financial Strength Rank of 6.


Scully Royalty Financial Strength Related Terms

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


Scully Royalty (Scully Royalty) Business Description

Traded in Other Exchanges
Address
2299 Yan An Road West, Room 2103 Shanghai Mart Tower, Changning District, Shanghai, CHN, 200336
Scully Royalty Ltd is a royalty-based company that maximizes earnings upon its iron ore royalty interest. The company's business segments include Royalty, which includes an interest in an iron ore mine; Industrial, which includes projects in resources and services; Merchant Banking, which comprises regulated merchant banking activities. The majority of the revenue is generated from the Royalty segment. The company's geographical segments include Canada, Africa, America, Asia, and Europe, out of which Canada accounts for the majority of the revenue.
Executives
Stefan Feuerstein director BERLIN CHARLOTTEN STR 59, GERMANY D-1017 2M 00000

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