GuruFocus Financial Strength Rank measures how strong a companys financial situation is. It is based on these factors
The debt burden that the company has as measured by its Interest coverage (current year).
Debt to revenue ratio. The lower, the better
Altman Z-score.
A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.
Explanation
The maximum rank is 10. Companies with rank 7 or higher will unlikely fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.
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