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Infracommerce Caxaas (BSP:IFCM3) Financial Strength : 4 (As of Jun. 2023)


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What is Infracommerce Caxaas Financial Strength?

Infracommerce Caxaas has the Financial Strength Rank of 4.

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.

Infracommerce Caxaas did not have earnings to cover the interest expense. Infracommerce Caxaas's debt to revenue ratio for the quarter that ended in Jun. 2023 was 0.62. As of today, Infracommerce Caxaas's Altman Z-Score is 0.11.


Competitive Comparison of Infracommerce Caxaas's Financial Strength

For the Specialty Business Services subindustry, Infracommerce Caxaas'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.


Infracommerce Caxaas's Financial Strength Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Infracommerce Caxaas's Financial Strength distribution charts can be found below:

* The bar in red indicates where Infracommerce Caxaas's Financial Strength falls into.



Infracommerce Caxaas 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:

Infracommerce Caxaas's Interest Expense for the months ended in Jun. 2023 was R$-28.5 Mil. Its Operating Income for the months ended in Jun. 2023 was R$-2.4 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2023 was R$490.7 Mil.

Infracommerce Caxaas's Interest Coverage for the quarter that ended in Jun. 2023 is

Infracommerce Caxaas did not have earnings to cover the interest expense.

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

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

Infracommerce Caxaas'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
=(256.995 + 490.732) / 1199.132
=0.62

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.

Infracommerce Caxaas has a Z-score of 0.11, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.11 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.


Infracommerce Caxaas  (BSP:IFCM3) 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.

Infracommerce Caxaas has the Financial Strength Rank of 4.


Infracommerce Caxaas Financial Strength Related Terms

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Infracommerce Caxaas (BSP:IFCM3) Business Description

Traded in Other Exchanges
N/A
Address
Av Doutor Cardoso de Melo 1855, 15º andar, Jardim Paulistano, São Paulo, SP, BRA, 04548-005
Infracommerce Caxaas SA is the largest full service company for digital businesses and works with the modular concept, bringing together platform, marketing, content, payment, logistics and SAC in three core competence cores: Omnichannel Platform, Marketing and Sales and Operations.

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