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Rapala VMC (Rapala VMC) Financial Strength : 5 (As of Dec. 2023)


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What is Rapala VMC Financial Strength?

Rapala VMC 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.

Rapala VMC did not have earnings to cover the interest expense. Rapala VMC's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.49. As of today, Rapala VMC's Altman Z-Score is 2.12.


Competitive Comparison of Rapala VMC's Financial Strength

For the Leisure subindustry, Rapala VMC'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.


Rapala VMC's Financial Strength Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Rapala VMC's Financial Strength distribution charts can be found below:

* The bar in red indicates where Rapala VMC's Financial Strength falls into.



Rapala VMC 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:

Rapala VMC's Interest Expense for the months ended in Dec. 2023 was $-5.5 Mil. Its Operating Income for the months ended in Dec. 2023 was $-1.4 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $82.4 Mil.

Rapala VMC's Interest Coverage for the quarter that ended in Dec. 2023 is

Rapala VMC 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.

Rapala VMC'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
=(28.244 + 82.443) / 226.172
=0.49

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.

Rapala VMC has a Z-score of 2.12, indicating it is in Grey Zones. This implies that Rapala VMC 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 2.12 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.


Rapala VMC  (OTCPK:RPNMF) 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.

Rapala VMC has the Financial Strength Rank of 5.


Rapala VMC Financial Strength Related Terms

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


Rapala VMC (Rapala VMC) Business Description

Traded in Other Exchanges
Address
Makelankatu 87, Helsinki, FIN, 00610
Rapala VMC Corp is a fishing tackle company. It is engaged in the business of manufacturing, sourcing and distributing mainly fishing tackle equipment as well as hunting, outdoor and winter sports equipment. The company's products include fishing lures, treble hooks, fishing related knives and hooks etc. The firm markets and sells its products under Sufix, Mora Ice, Peltonen, Williamson, VMC, Storm, Blue fox and Rapala brand names. The company has Group products and Third-party products operating segments. It derives the majority of its revenues from the Group products operating segment.

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