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BUDFF (Anheuser-Busch InBev/NV) Financial Strength : 5 (As of Sep. 2024)


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What is Anheuser-Busch InBev/NV Financial Strength?

Anheuser-Busch InBev/NV has the Financial Strength Rank of 5.

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.

Anheuser-Busch InBev/NV's Interest Coverage for the quarter that ended in Sep. 2024 was 4.53. Anheuser-Busch InBev/NV's debt to revenue ratio for the quarter that ended in Sep. 2024 was 0.00. As of today, Anheuser-Busch InBev/NV's Altman Z-Score is 1.26.


Competitive Comparison of Anheuser-Busch InBev/NV's Financial Strength

For the Beverages - Brewers subindustry, Anheuser-Busch InBev/NV'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.


Anheuser-Busch InBev/NV's Financial Strength Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Anheuser-Busch InBev/NV's Financial Strength distribution charts can be found below:

* The bar in red indicates where Anheuser-Busch InBev/NV's Financial Strength falls into.



Anheuser-Busch InBev/NV 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:

Anheuser-Busch InBev/NV's Interest Expense for the months ended in Sep. 2024 was $-904 Mil. Its Operating Income for the months ended in Sep. 2024 was $4,091 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was $0 Mil.

Anheuser-Busch InBev/NV'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*4091/-904
=4.53

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

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

Anheuser-Busch InBev/NV'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
=(0 + 0) / 60184
=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.

Anheuser-Busch InBev/NV has a Z-score of 1.26, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.26 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.


Anheuser-Busch InBev/NV  (OTCPK:BUDFF) 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.

Anheuser-Busch InBev/NV has the Financial Strength Rank of 5.


Anheuser-Busch InBev/NV Financial Strength Related Terms

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Anheuser-Busch InBev/NV Business Description

Address
Brouwerijplein 1, Leuven, BEL, 3000
Anheuser-Busch InBev is the largest brewer in the world and one of the world's top five consumer product companies, as measured by EBITDA. The company's portfolio contains six of the top 10 beer brands by volume, according to Euromonitor, and we estimate it distributes 23 brands with retail sales over $1 billion. AB InBev was created by the 2008 merger of Belgium-based InBev and US-based Anheuser-Busch. The firm holds a 62% economic interest in Ambev and in 2016 it acquired SABMiller.