What is Svenska Cellulosa AB Financial Strength?
Svenska Cellulosa AB has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
Good Sign:
Svenska Cellulosa AB 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.
Svenska Cellulosa AB's Interest Coverage for the quarter that ended in Mar. 2024 was 8.93.
Svenska Cellulosa AB's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.04.
As of today, Svenska Cellulosa AB's Altman Z-Score is 2.24.
Competitive Comparison of Svenska Cellulosa AB's Financial Strength
For the Lumber & Wood Production subindustry, Svenska Cellulosa AB'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.
Svenska Cellulosa AB's Financial Strength Distribution in the Forest Products Industry
For the Forest Products industry and Basic Materials sector, Svenska Cellulosa AB's Financial Strength distribution charts can be found below:
* The bar in red indicates where Svenska Cellulosa AB's Financial Strength falls into.
Svenska Cellulosa AB 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:
Svenska Cellulosa AB's Interest Expense for the
months ended in Mar. 2024 was kr-123 Mil. Its Operating Income for the
months ended in Mar. 2024 was kr1,098 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was kr454 Mil.
Svenska Cellulosa AB's Interest Coverage for the quarter that ended in Mar. 2024 is
The higher the ratio, the stronger the company's financial strength is.
2. Debt to revenue ratio. The lower, the better.
Svenska Cellulosa AB's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 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.
Svenska Cellulosa AB has a Z-score of 2.24, indicating it is in Grey Zones. This implies that Svenska Cellulosa AB is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.
Warning Sign:
Altman Z-score of 2.24 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.
* 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.
Svenska Cellulosa AB (CHIX:SCABS) Business Description
Traded in Other Exchanges
Address
Skepparplatsen 1, Sundsvall, SWE, SE-851 88
Svenska Cellulosa AB is Europe's private forest owner, engaged in four business segments; the Forest segment supplies its industries with timber. The segment includes managing and harvesting on its own forest land, sourcing timber from other forest owners, and transporting the timber to its industries, The Wood segment includes five sawmills in northern Sweden and wood processing and distribution to the building materials trade in Sweden and France, The Pulp segment encompasses the production and sale of bleached softwood kraft pulp (NBSK) and chemi-thermomechanical pulp (CTMP), which are produced at the Ostrand pulp mill, and The Containerboard segment includes packaging paper with kraft liner manufacturing at the Obbola and Munksund paper mills.
Svenska Cellulosa AB (CHIX:SCABS) Headlines
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