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IOL Chemicals And Pharmaceuticals (BOM:524164) Financial Strength : 8 (As of Dec. 2024)


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What is IOL Chemicals And Pharmaceuticals Financial Strength?

IOL Chemicals And Pharmaceuticals has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

IOL Chemicals And Pharmaceuticals Ltd shows strong financial strength.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and 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.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

IOL Chemicals And Pharmaceuticals's Interest Coverage for the quarter that ended in Dec. 2024 was 6.32. IOL Chemicals And Pharmaceuticals's debt to revenue ratio for the quarter that ended in Dec. 2024 was 0.00. As of today, IOL Chemicals And Pharmaceuticals's Altman Z-Score is 3.24.


Competitive Comparison of IOL Chemicals And Pharmaceuticals's Financial Strength

For the Drug Manufacturers - Specialty & Generic subindustry, IOL Chemicals And Pharmaceuticals'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.


IOL Chemicals And Pharmaceuticals's Financial Strength Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, IOL Chemicals And Pharmaceuticals's Financial Strength distribution charts can be found below:

* The bar in red indicates where IOL Chemicals And Pharmaceuticals's Financial Strength falls into.


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IOL Chemicals And Pharmaceuticals 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:

IOL Chemicals And Pharmaceuticals's Interest Expense for the months ended in Dec. 2024 was ₹-45 Mil. Its Operating Income for the months ended in Dec. 2024 was ₹282 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was ₹0 Mil.

IOL Chemicals And Pharmaceuticals's Interest Coverage for the quarter that ended in Dec. 2024 is

Interest Coverage=-1*Operating Income (Q: Dec. 2024 )/Interest Expense (Q: Dec. 2024 )
=-1*281.9/-44.6
=6.32

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

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

IOL Chemicals And Pharmaceuticals's Debt to Revenue Ratio for the quarter that ended in Dec. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 0) / 20932
=0.00

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.

IOL Chemicals And Pharmaceuticals has a Z-score of 3.24, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.24 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.


IOL Chemicals And Pharmaceuticals  (BOM:524164) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

IOL Chemicals And Pharmaceuticals has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.


IOL Chemicals And Pharmaceuticals Financial Strength Related Terms

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IOL Chemicals And Pharmaceuticals Business Description

Traded in Other Exchanges
Address
85, Industrial Area, 'A', Ludhiana, PB, IND, 141 003
IOL Chemicals And Pharmaceuticals Ltd is an India-based pharmaceutical company. The primary activity of the group is the manufacturing and sale of drugs and organic chemicals. The business activity is functioned through the Chemicals and Pharmaceutical segments. The Chemicals segment produces and sells chemicals such as Ethyl Acetate, Acetic Anhydride, Acetyl Chloride, Mono Chloro Acetic Acid, and Iso Butyl benzene, whereas the Pharmaceutical segment produces and sells various active pharmaceutical ingredients such as Ibuprofen, Metformin, Fenofibrate, Lamotrigine, and others. It derives prime revenue from the Pharmaceutical segment. Geographically, the group's products are sold in both the Indian and international markets.

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