International Flavors & Fragrances (International Flavors & Fragrances) Financial Strength : 4 (As of Dec. 2023)

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International Flavors & Fragrances Financial Strength Definition

International Flavors & Fragrances 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.

International Flavors & Fragrances's Interest Coverage for the quarter that ended in Dec. 2023 was 2.14. International Flavors & Fragrances's debt to revenue ratio for the quarter that ended in Dec. 2023 was 1.00. As of today, International Flavors & Fragrances's Altman Z-Score is 0.93.

Competitive Comparison of International Flavors & Fragrances's Financial Strength

For the Specialty Chemicals subindustry, International Flavors & Fragrances'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.

International Flavors & Fragrances's Financial Strength Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, International Flavors & Fragrances's Financial Strength distribution charts can be found below:

* The bar in red indicates where International Flavors & Fragrances's Financial Strength falls into.

International Flavors & Fragrances 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:

International Flavors & Fragrances's Interest Expense for the months ended in Dec. 2023 was $-43 Mil. Its Operating Income for the months ended in Dec. 2023 was $92 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $9,828 Mil.

International Flavors & Fragrances's Interest Coverage for the quarter that ended in Dec. 2023 is

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	92	/	-43
	=	2.14

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

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

International Flavors & Fragrances's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio	=	Total Debt (Q: Dec. 2023 )			/	Revenue
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Revenue
	=	(970	+	9828)	/	10812
	=	1.00

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.

International Flavors & Fragrances has a Z-score of 0.93, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.93 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.

International Flavors & Fragrances (NYSE:IFF) 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.

International Flavors & Fragrances has the Financial Strength Rank of 4.

International Flavors & Fragrances Financial Strength Related Terms

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

International Flavors & Fragrances (International Flavors & Fragrances) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » International Flavors & Fragrances Inc (NYSE:IFF) » Definitions » Financial Strength

Comparable Companies

Traded in Other Exchanges

IFF:Germany IFF:Germany I1FF34:Brazil I1CE34:Brazil IFF:Austria IFF:Argentina

Address

521 West 57th Street, New York, NY, USA, 10019-2960

Website

https://www.iff.com

International Flavors & Fragrances is the largest specialty ingredients producer globally. The company sells ingredients for the food, beverage, health, household goods, personal care, and pharmaceutical industries. The company makes proprietary formulations, partnering with customers to deliver custom solutions. The nourish segment, which generates roughly half of revenue, is a leading flavor producer and also sell texturants, plant-based proteins, and other ingredients. The health and biosciences business, which generates around one fourth of revenue, is a global leader in probiotics and enzymes. IFF is also one of the leading fragrance producers in the world. The firm also sells pharmaceutical ingredients such as excipients and time-release polymers.

Executives

Yuvraj Arora	officer: President, Nourish	INTERNATIONAL FLOWERS & FRAGRANCES, 521 WEST 57TH STREET, NEW YORK NY 10019
Fauchon De Villeplee Christophe	officer: President, Scent	INTERNATIONAL FLAVORS & FRANGRANCES INC., 521 WEST 57TH STREET, NEW YORK NY 10019
Kevin O'byrne	director	INTERNATIONAL FLAVORS & FRAGRANCES, 521 WEST 57TH STREET, NEW YORK NY 10019
Dawn C Willoughby	director	1221 BROADWAY, OAKLAND CA 94612
Gaoxiang Hu	director	16690 COLLINS AVE., SUITE PH-1, SUNNY ISLES BEACH FL 33160
Mark J Costa	director	200 SOUTH WILCOX DRIVE, P.O. BOX 431, KINGSPORT TN 37660
Ralf Finzel	officer: EVP, Global Operations Officer	INTERNATIONAL FLAVORS & FRAGRANCES, 521 WEST 57TH STREET, NEW YORK NY 10019
Beril Yildiz	officer: CAO, SVP & Controller	ONE NEW YORK PLAZA, NEW YORK NY 10004
Deborah Borg	officer: EVP, Chief HR and D&I Officer	BUNGE LIMITED, 1391 TIMBERLAKE MANOR PARKWAY, CHESTERFIELD MO 63017
Francisco Fortanet	officer: SVP, Operations	521 WEST 57TH STREET, NEW YORK NY 10019
Frank Clyburn	officer: Chief Executive Officer	2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033
Barry A. Bruno	director	500 CHARLES EWING BLVD, EWING NJ 08628
Glenn R Richter	officer: CFO	3333 BEVERLY ROAD, B6 277A, HOFFMAN ESTATES IL 60179
Kathryn Jean Boor	director	3736 S. MAIN STREET, MARION NY 14505
Edward D Breen	director	C/O TYCO INTERNATIONAL (US) INC, 9 WEST 57TH ST 43RD FL., NEW YORK NY 10019