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EMLZF (Emmi AG) Financial Strength : 8 (As of Jun. 2024)


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What is Emmi AG Financial Strength?

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

Good Sign:

Emmi AG 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.

Emmi AG's Interest Coverage for the quarter that ended in Jun. 2024 was 19.01. Emmi AG's debt to revenue ratio for the quarter that ended in Jun. 2024 was 0.17. As of today, Emmi AG's Altman Z-Score is 4.85.


Competitive Comparison of Emmi AG's Financial Strength

For the Packaged Foods subindustry, Emmi AG'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.


Emmi AG's Financial Strength Distribution in the Consumer Packaged Goods Industry

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

* The bar in red indicates where Emmi AG's Financial Strength falls into.



Emmi AG 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:

Emmi AG's Interest Expense for the months ended in Jun. 2024 was $-8 Mil. Its Operating Income for the months ended in Jun. 2024 was $157 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2024 was $675 Mil.

Emmi AG's Interest Coverage for the quarter that ended in Jun. 2024 is

Interest Coverage=-1*Operating Income (Q: Jun. 2024 )/Interest Expense (Q: Jun. 2024 )
=-1*156.942/-8.257
=19.01

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

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

Emmi AG's Debt to Revenue Ratio for the quarter that ended in Jun. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(85.591 + 675.05) / 4513.73
=0.17

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.

Emmi AG has a Z-score of 4.85, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.85 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.


Emmi AG  (OTCPK:EMLZF) 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.

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


Emmi AG Financial Strength Related Terms

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Emmi AG Business Description

Traded in Other Exchanges
Address
Landenbergstrasse 1, Lucerne, CHE, CH-6005
Emmi AG is a Swiss dairy products manufacturer. The company generates revenue in Switzerland, the Americas, other European countries, and the rest of the world (below 5%). By product category, dairy products, cheese, and fresh products are the largest segments. The company also offers powder/concentrates among other products/services. The company's key brands include Caffe Latte, YoQua and Jogurtpur in the fresh products category, and Kaltbach and Der Scharfe Maxx in the cheese segment.

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