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National Gypsum Co (SAU:2090) Financial Strength : 8 (As of Dec. 2023)


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What is National Gypsum Co Financial Strength?

National Gypsum Co has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

National Gypsum Co shows strong financial strength.

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.

National Gypsum Co did not have earnings to cover the interest expense. National Gypsum Co's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.21. As of today, National Gypsum Co's Altman Z-Score is 12.12.


Competitive Comparison of National Gypsum Co's Financial Strength

For the Building Materials subindustry, National Gypsum Co'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.


National Gypsum Co's Financial Strength Distribution in the Building Materials Industry

For the Building Materials industry and Basic Materials sector, National Gypsum Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where National Gypsum Co's Financial Strength falls into.



National Gypsum Co 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:

National Gypsum Co's Interest Expense for the months ended in Dec. 2023 was ﷼-0.15 Mil. Its Operating Income for the months ended in Dec. 2023 was ﷼-8.26 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was ﷼5.54 Mil.

National Gypsum Co's Interest Coverage for the quarter that ended in Dec. 2023 is

National Gypsum Co 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.

National Gypsum Co'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
=(0.593 + 5.538) / 28.836
=0.21

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.

National Gypsum Co has a Z-score of 12.12, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 12.12 is strong.

* 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.


National Gypsum Co  (SAU:2090) 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.

National Gypsum Co has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.


National Gypsum Co Financial Strength Related Terms

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National Gypsum Co (SAU:2090) Business Description

Traded in Other Exchanges
N/A
Address
P.O.Box 187, Riyadh, SAU, 11411
National Gypsum Co produces and sells gypsum and its derivatives in the Kingdom of Saudi Arabia and internationally. The company offers various types of gypsum plasterboard products, such as regular, and fire and moisture resistant plasterboards; and boards laminated with lead sheet. It also provides gypsum powder products, such as plastering, sprinkling, spraying machine, agricultural, and other products.

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