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United Foods Co PSC (DFM:UFC) Financial Strength : 9 (As of Mar. 2024)


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What is United Foods Co PSC Financial Strength?

United Foods Co PSC has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

United Foods Co PSC 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.

United Foods Co PSC's Interest Coverage for the quarter that ended in Mar. 2024 was 61.04. United Foods Co PSC's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.02. As of today, United Foods Co PSC's Altman Z-Score is 5.11.


Competitive Comparison of United Foods Co PSC's Financial Strength

For the Packaged Foods subindustry, United Foods Co PSC'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.


United Foods Co PSC's Financial Strength Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, United Foods Co PSC's Financial Strength distribution charts can be found below:

* The bar in red indicates where United Foods Co PSC's Financial Strength falls into.



United Foods Co PSC 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:

United Foods Co PSC's Interest Expense for the months ended in Mar. 2024 was د.إ-0.2 Mil. Its Operating Income for the months ended in Mar. 2024 was د.إ14.2 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was د.إ12.9 Mil.

United Foods Co PSC'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*14.162/-0.232
=61.04

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

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

United Foods Co PSC'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
=(2.269 + 12.876) / 627.92
=0.02

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.

United Foods Co PSC has a Z-score of 5.11, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 5.11 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.


United Foods Co PSC  (DFM:UFC) 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.

United Foods Co PSC has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.


United Foods Co PSC Financial Strength Related Terms

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United Foods Co PSC (DFM:UFC) Business Description

Traded in Other Exchanges
N/A
Address
Al Quoz 1, P.O. Box 5836, Dubai, ARE
United Foods Co PSC is engaged in manufacturing, processing, and marketing of vegetable ghee, cooking oil, margarine, butter products, and fat including trading of other food products. Geographically, It operates in the United Arab Emirates, GCC other than UAE and the rest of the world, out of which the majority is from the United Arab Emirates. The Company operates under the following brands- Aseel, Nawar, Safi, Mumtaz, Della Terra and Super Sun. The company's business units are Oil & Fats, Frozen & Chilled and Water & Beverages.

United Foods Co PSC (DFM:UFC) Headlines

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