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Uamt (BSE:UAM) Financial Strength : 7 (As of Sep. 2023)


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What is Uamt Financial Strength?

Uamt has the Financial Strength Rank of 7.

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.

Uamt did not have earnings to cover the interest expense. Uamt's debt to revenue ratio for the quarter that ended in Sep. 2023 was 0.51. As of today, Uamt's Altman Z-Score is 1.34.


Competitive Comparison of Uamt's Financial Strength

For the Auto Parts subindustry, Uamt'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.


Uamt's Financial Strength Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Uamt's Financial Strength distribution charts can be found below:

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



Uamt 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:

Uamt's Interest Expense for the months ended in Sep. 2023 was lei-0.22 Mil. Its Operating Income for the months ended in Sep. 2023 was lei-0.02 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was lei12.94 Mil.

Uamt's Interest Coverage for the quarter that ended in Sep. 2023 is

Uamt 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.

Uamt's Debt to Revenue Ratio for the quarter that ended in Sep. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0.57 + 12.936) / 26.356
=0.51

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.

Uamt has a Z-score of 1.34, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.34 is in distress zone. This implies bankruptcy possibility in the next two years.

* 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.


Uamt  (BSE:UAM) 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.

Uamt has the Financial Strength Rank of 7.


Uamt Financial Strength Related Terms

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


Uamt (BSE:UAM) Business Description

Traded in Other Exchanges
N/A
Address
Uzinelor Street No. 8, Oradea, BIHOR, ROU, 410605
Uamt SA is a manufacturer of auto parts. The company produces and commercializes parts and subassemblies for means of transport, molded pieces from Non-Iron alloy, execution of installations, tool, technological equipment and SDV. The firm specializes in fabricating of other parts and accessories for vehicles and for engines of vehicles. The company produces exterior mirrors, pedal systems, brake systems, control cables rods, wheel keys, stamped parts and plastic molded parts. The operating buisness segments are industrial customers, car fitters, customers for auto parts, service and trading companies, and Customers for SDVs. The company operates in Romania.

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