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Gokul Agro Resources (BOM:539725) Financial Strength : 7 (As of Dec. 2024)


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What is Gokul Agro Resources Financial Strength?

Gokul Agro Resources has the Financial Strength Rank of 7.

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.

Gokul Agro Resources's Interest Coverage for the quarter that ended in Dec. 2024 was 2.90. Gokul Agro Resources's debt to revenue ratio for the quarter that ended in Dec. 2024 was 0.00. As of today, Gokul Agro Resources's Altman Z-Score is 6.27.


Competitive Comparison of Gokul Agro Resources's Financial Strength

For the Packaged Foods subindustry, Gokul Agro Resources'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.


Gokul Agro Resources's Financial Strength Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Gokul Agro Resources's Financial Strength distribution charts can be found below:

* The bar in red indicates where Gokul Agro Resources's Financial Strength falls into.


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Gokul Agro Resources 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:

Gokul Agro Resources's Interest Expense for the months ended in Dec. 2024 was ₹-437 Mil. Its Operating Income for the months ended in Dec. 2024 was ₹1,265 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was ₹0 Mil.

Gokul Agro Resources'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*1264.661/-436.808
=2.90

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

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

Gokul Agro Resources'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) / 199528.616
=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.

Gokul Agro Resources has a Z-score of 6.27, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 6.27 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.


Gokul Agro Resources  (BOM:539725) 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.

Gokul Agro Resources has the Financial Strength Rank of 7.


Gokul Agro Resources Financial Strength Related Terms

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Gokul Agro Resources Business Description

Traded in Other Exchanges
Address
S.G. Highway, Crown - 3, Inspire Business Park, Near Vaishnodevi Circle, Ahmedabad, GJ, IND, 380005
Gokul Agro Resources Ltd is engaged in the business of manufacturing and trading of edible and non-edible oil, meals and other agricultural products. The company operates in one business segment that is Agro Based Commodities. The organization offers agro-based commodities under various product groups, including soybean, palmolive, cottonseed oil, sunflower oil, castor oil, oil cakes, de-oiled cakes, Vanaspati, oilseeds, and other agro-commodities. Its Oleochemical Products include soya acid oil and palm fatty acid distillate.

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