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Enel Distribucion PeruA (LIM:ENDISPC1) Financial Strength : 5 (As of Mar. 2024)


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What is Enel Distribucion PeruA Financial Strength?

Enel Distribucion PeruA has the Financial Strength Rank of 5.

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.

Enel Distribucion PeruA's Interest Coverage for the quarter that ended in Mar. 2024 was 6.34. Enel Distribucion PeruA's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.50. As of today, Enel Distribucion PeruA's Altman Z-Score is 2.92.


Competitive Comparison of Enel Distribucion PeruA's Financial Strength

For the Utilities - Regulated Electric subindustry, Enel Distribucion PeruA'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.


Enel Distribucion PeruA's Financial Strength Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Enel Distribucion PeruA's Financial Strength distribution charts can be found below:

* The bar in red indicates where Enel Distribucion PeruA's Financial Strength falls into.



Enel Distribucion PeruA 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:

Enel Distribucion PeruA's Interest Expense for the months ended in Mar. 2024 was S/.-32 Mil. Its Operating Income for the months ended in Mar. 2024 was S/.203 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was S/.869 Mil.

Enel Distribucion PeruA'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*203.438/-32.093
=6.34

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

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

Enel Distribucion PeruA'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
=(1246.156 + 869.308) / 4227.284
=0.50

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.

Enel Distribucion PeruA has a Z-score of 2.92, indicating it is in Grey Zones. This implies that Enel Distribucion PeruA is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.92 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* 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.


Enel Distribucion PeruA  (LIM:ENDISPC1) 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.

Enel Distribucion PeruA has the Financial Strength Rank of 5.


Enel Distribucion PeruA Financial Strength Related Terms

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Enel Distribucion PeruA (LIM:ENDISPC1) Business Description

Traded in Other Exchanges
N/A
Address
Jr. Teniente Cesar Lopez Rojas No. 201, Urb. Maranga, San Miguel, Lima, PER
Enel Distribucion Peru SAA distributes electricity in the north of Lima, Callao and the provinces of Huaura, Huaral, Barranca and Oyon. The company distributes electricity in more than 50 districts of the department of Lima region. It has an operation in more than 25 countries.

Enel Distribucion PeruA (LIM:ENDISPC1) Headlines

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