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Lincoln Pharmaceuticals (BOM:531633) Financial Strength : 10 (As of Sep. 2024)


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What is Lincoln Pharmaceuticals Financial Strength?

Lincoln Pharmaceuticals has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Lincoln Pharmaceuticals Ltd 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.

Lincoln Pharmaceuticals's Interest Coverage for the quarter that ended in Sep. 2024 was 72.12. Lincoln Pharmaceuticals's debt to revenue ratio for the quarter that ended in Sep. 2024 was 0.00. As of today, Lincoln Pharmaceuticals's Altman Z-Score is 9.77.


Competitive Comparison of Lincoln Pharmaceuticals's Financial Strength

For the Drug Manufacturers - Specialty & Generic subindustry, Lincoln 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.


Lincoln Pharmaceuticals's Financial Strength Distribution in the Drug Manufacturers Industry

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

* The bar in red indicates where Lincoln Pharmaceuticals's Financial Strength falls into.



Lincoln 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:

Lincoln Pharmaceuticals's Interest Expense for the months ended in Sep. 2024 was ₹-3 Mil. Its Operating Income for the months ended in Sep. 2024 was ₹252 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was ₹0 Mil.

Lincoln Pharmaceuticals's Interest Coverage for the quarter that ended in Sep. 2024 is

Interest Coverage=-1*Operating Income (Q: Sep. 2024 )/Interest Expense (Q: Sep. 2024 )
=-1*251.544/-3.488
=72.12

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

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Lincoln Pharmaceuticals Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

Lincoln Pharmaceuticals's Debt to Revenue Ratio for the quarter that ended in Sep. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(13.554 + 0) / 6448.54
=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.

Lincoln Pharmaceuticals has a Z-score of 9.77, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 9.77 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.


Lincoln Pharmaceuticals  (BOM:531633) 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.

Lincoln Pharmaceuticals has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.


Lincoln Pharmaceuticals Financial Strength Related Terms

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Lincoln Pharmaceuticals Business Description

Traded in Other Exchanges
Address
Science City Road, Lincoln House, Behind Satyam Complex, Sola, Ahmedabad, GJ, IND, 380060
Lincoln Pharmaceuticals Ltd is an India-based company engaged in the business of manufacturing and trading of pharmaceutical products. It offers products in the fields of cardiac, diabetic, anti-malarial, anti-biotic, anti-fungal, cephalosporin, analgesics, anesthetics, anti-pyretic, GIT products, vitamin-minerals, and iron preparations. Some of the key brands through which the company markets its products are; Rhino, Binafin, Kezolin, Hepalin, Progut, and Vomistat among others. Geographically, it carries out sales in India and outside India; generating key revenue from outside India.

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