What is Delta Apparel Financial Strength?
Delta Apparel 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:
Delta Apparel Inc 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.
Delta Apparel did not have earnings to cover the interest expense.
Delta Apparel's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.58.
As of today, Delta Apparel's Altman Z-Score is 0.88.
Competitive Comparison of Delta Apparel's Financial Strength
For the Apparel Manufacturing subindustry, Delta Apparel'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.
Delta Apparel's Financial Strength Distribution in the Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Delta Apparel's Financial Strength distribution charts can be found below:
* The bar in red indicates where Delta Apparel's Financial Strength falls into.
Delta Apparel 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:
Delta Apparel's Interest Expense for the
months ended in Mar. 2024 was €-3.2 Mil. Its Operating Income for the
months ended in Mar. 2024 was €-14.4 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was €56.9 Mil.
Delta Apparel's Interest Coverage for the quarter that ended in Mar. 2024 is
| Delta Apparel did not have earnings to cover the interest expense. |
The higher the ratio, the stronger the company's financial strength is.
2. Debt to revenue ratio. The lower, the better.
Delta Apparel'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.
Delta Apparel has a Z-score of 0.88, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 0.88 is in distress zone. This implies bankruptcy possibility in the next two years.
* 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.
Delta Apparel (FRA:DA7) Business Description
Traded in Other Exchanges
Address
2750 Premiere Parkway, Suite 100, Duluth, GA, USA, 30097
Delta Apparel Inc together with its subsidiaries is an international apparel design, marketing, manufacturing, and sourcing company. It operates its business in two distinct segments: Delta Group and Salt Life Group. The company offers a diverse portfolio of lifestyle basics and branded activewear apparel, headwear, and related accessory products. It specializes in selling casual and athletic products through distribution channels and distribution tiers, including specialty stores, boutiques, department stores, mid and mass channels, e-retailers, and the U.S. military. It also offers its products to consumers on its websites and in its retail stores. The company derives the maximum revenue from the wholesale of goods through the Delta Group in the United States.
Delta Apparel (FRA:DA7) Headlines
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