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Tungsten West (LSE:TUN) Financial Strength : 0 (As of Sep. 2023)


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What is Tungsten West Financial Strength?

Tungsten West has the Financial Strength Rank of 0.

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.

Tungsten West did not have earnings to cover the interest expense. Tungsten West's debt to revenue ratio for the quarter that ended in Sep. 2023 was 6.01. As of today, Tungsten West's Altman Z-Score is -0.83.


Competitive Comparison of Tungsten West's Financial Strength

For the Other Industrial Metals & Mining subindustry, Tungsten West'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.


Tungsten West's Financial Strength Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Tungsten West's Financial Strength distribution charts can be found below:

* The bar in red indicates where Tungsten West's Financial Strength falls into.



Tungsten West 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:

Tungsten West's Interest Expense for the months ended in Sep. 2023 was £-1.02 Mil. Its Operating Income for the months ended in Sep. 2023 was £-8.10 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was £1.93 Mil.

Tungsten West's Interest Coverage for the quarter that ended in Sep. 2023 is

Tungsten West 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.

Tungsten West's Debt to Revenue Ratio for the quarter that ended in Sep. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(6.758 + 1.927) / 1.444
=6.01

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.

Tungsten West has a Z-score of -0.83, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of -0.83 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.


Tungsten West  (LSE:TUN) 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.

Tungsten West has the Financial Strength Rank of 0.


Tungsten West Financial Strength Related Terms

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


Tungsten West (LSE:TUN) Business Description

Traded in Other Exchanges
Address
Hemerdon Mine, Drakelands, Plympton, Plymouth, Devon, GBR, PL7 5BS
Tungsten West PLC owns and operates historical Hemerdon tungsten and tin mine located near Plymouth in southern Devon, England. It has a compliant Mineral Resource of approximately 325Mt at 0.12 per cent. WO3. The company's main country of operation is the United Kingdom.

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