What is Movida Participacoes Financial Strength?
Movida Participacoes has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Movida Participacoes SA displays poor financial strength. Usually, this is caused by too much debt for the company.
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.
Movida Participacoes did not have earnings to cover the interest expense.
Movida Participacoes's debt to revenue ratio for the quarter that ended in Dec. 2023 was 1.54.
As of today, Movida Participacoes's Altman Z-Score is 0.51.
Competitive Comparison of Movida Participacoes's Financial Strength
For the Rental & Leasing Services subindustry, Movida Participacoes'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.
Movida Participacoes's Financial Strength Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, Movida Participacoes's Financial Strength distribution charts can be found below:
* The bar in red indicates where Movida Participacoes's Financial Strength falls into.
Movida Participacoes 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:
Movida Participacoes's Interest Expense for the
months ended in Dec. 2023 was R$-329 Mil. Its Operating Income for the
months ended in Dec. 2023 was R$-201 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was R$14,018 Mil.
Movida Participacoes's Interest Coverage for the quarter that ended in Dec. 2023 is
| Movida Participacoes did not have earnings to cover the interest expense. |
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Movida Participacoes SAs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.
2. Debt to revenue ratio. The lower, the better.
Movida Participacoes's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is
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.
Movida Participacoes has a Z-score of 0.51, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 0.51 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.
Movida Participacoes (BSP:MOVI3) Business Description
Traded in Other Exchanges
N/A
Address
Renato Paes de Barros street, 9th floor, Sao Paulo, SP, BRA, 04530-001
Movida Participacoes SA through its subsidiaries is engaged in car rental activities in Brazil. The business activities of the group function through Rent a Car (RAC) and light vehicle fleet management and outsourcing segments. The Rent a car segment is responsible for car rental in stores located inside and outside airports, and Fleet Management and Outsourcing segment provides car rental services signed through long-term contracts with corporate clients. In addition, the group is also involved in the sale of used cars. Geographically activities are carried out in Brazil and the company derives revenue from rental activities.
Movida Participacoes (BSP:MOVI3) Headlines
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