BPER Banca SpA (FRA:4BE) Financial Strength : 3 (As of Sep. 2024)

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What is BPER Banca SpA Financial Strength?

BPER Banca SpA has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

BPER Banca SpA displays poor financial strength. Usually, this is caused by too much debt for the company.

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.

GuruFocus does not calculate BPER Banca SpA's interest coverage with the available data. BPER Banca SpA's debt to revenue ratio for the quarter that ended in Sep. 2024 was 3.37. Altman Z-Score does not apply to banks and insurance companies.

BPER Banca SpA 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:

BPER Banca SpA's Interest Expense for the months ended in Sep. 2024 was €-404 Mil. Its Operating Income for the months ended in Sep. 2024 was €0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was €19,752 Mil.

BPER Banca SpA's Interest Coverage for the quarter that ended in Sep. 2024 is

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

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

BPER Banca SpA'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	+	19751.629)	/	5860.292
	=	3.37

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.

Altman Z-Score does not apply to banks and insurance companies.

* 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.

BPER Banca SpA (FRA:4BE) 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.

BPER Banca SpA has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

BPER Banca SpA Financial Strength Related Terms

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BPER Banca SpA Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » BPER Banca SpA (FRA:4BE) » Definitions » Financial Strength

Comparable Companies

Traded in Other Exchanges

BPXXY:USA BPE:Italy BPEm:UK 0MU6:UK BPE:Austria

Address

Via San Carlo 8/20, Modena, ITA, 41121

Website

http://www.bper.it

BPER Banca SpA is a banking group consisting of four Italian regional commercial banks that merged on the initiative of BPER Banca. The banks are involved in a number of market segments, including retail banking, corporate and investment banking, and wealth management and insurance. In addition to the banks, the Group includes product companies, including asset management, personal loans, leasing, and factoring operations, and special purpose vehicles. Its strategy emphasizes customer service and cooperative banking. BPER group's customer base overwhelming derives from retail banking, mostly from individuals with some business deposits. Its loan base, however, is principally the group's corporate customers.