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Cairo Poultry (CAI:POUL) Financial Strength : 8 (As of Mar. 2024)


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What is Cairo Poultry Financial Strength?

Cairo Poultry has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Cairo Poultry 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.

Cairo Poultry's Interest Coverage for the quarter that ended in Mar. 2024 was 66.23. Cairo Poultry's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.03. As of today, Cairo Poultry's Altman Z-Score is 3.15.


Competitive Comparison of Cairo Poultry's Financial Strength

For the Farm Products subindustry, Cairo Poultry'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.


Cairo Poultry's Financial Strength Distribution in the Consumer Packaged Goods Industry

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

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



Cairo Poultry 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:

Cairo Poultry's Interest Expense for the months ended in Mar. 2024 was E£-11 Mil. Its Operating Income for the months ended in Mar. 2024 was E£724 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was E£14 Mil.

Cairo Poultry's Interest Coverage for the quarter that ended in Mar. 2024 is

Interest Coverage=-1*Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*723.723/-10.927
=66.23

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. Cairo Poultry has enough cash to cover all of its debt. Its financial situation is stable.

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

Cairo Poultry's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(386.353 + 13.878) / 13731.708
=0.03

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.

Cairo Poultry has a Z-score of 3.15, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.15 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.


Cairo Poultry  (CAI:POUL) 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.

Cairo Poultry has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.


Cairo Poultry Financial Strength Related Terms

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Cairo Poultry (CAI:POUL) Business Description

Traded in Other Exchanges
N/A
Address
32(B) Murad st, P.O. Box 42, Giza, EGY
Cairo Poultry is an Egypt-based company that operates in the farming and food processing sectors. It focuses on the production, breeding and fattening chicks; production of animal feed, and hatching of eggs, as well as participating in similar projects inside and outside Egypt. The firm also focuses on other related industries, such as starch and glucose, logistics and feed ingredients trading. Its segment includes Fodder Sector, Fatting Sector, Incubation Sector, Processing Sector, Grands Sector, Security Sector, and Agriculture Sector. The company's Processing Sector earns most of its revenue.

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