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Deutsche Rohstoff AG (FRA:DR0) Financial Strength : 5 (As of Jun. 2024)


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What is Deutsche Rohstoff AG Financial Strength?

Deutsche Rohstoff AG has the Financial Strength Rank of 5.

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.

Deutsche Rohstoff AG's Interest Coverage for the quarter that ended in Jun. 2024 was 5.38. Deutsche Rohstoff AG's debt to revenue ratio for the quarter that ended in Jun. 2024 was 0.70. As of today, Deutsche Rohstoff AG's Altman Z-Score is 2.04.


Competitive Comparison of Deutsche Rohstoff AG's Financial Strength

For the Oil & Gas E&P subindustry, Deutsche Rohstoff 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.


Deutsche Rohstoff AG's Financial Strength Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Deutsche Rohstoff AG's Financial Strength distribution charts can be found below:

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



Deutsche Rohstoff 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:

Deutsche Rohstoff AG's Interest Expense for the months ended in Jun. 2024 was €-3.2 Mil. Its Operating Income for the months ended in Jun. 2024 was €17.3 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2024 was €159.4 Mil.

Deutsche Rohstoff 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*17.31/-3.217
=5.38

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

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

Deutsche Rohstoff 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
=(0 + 159.449) / 226.344
=0.70

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.

Deutsche Rohstoff AG has a Z-score of 2.04, indicating it is in Grey Zones. This implies that Deutsche Rohstoff AG 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 2.04 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.


Deutsche Rohstoff AG  (FRA:DR0) 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.

Deutsche Rohstoff AG has the Financial Strength Rank of 5.


Deutsche Rohstoff AG Financial Strength Related Terms

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Deutsche Rohstoff AG Business Description

Traded in Other Exchanges
Address
Q7, 24, Mannheim, BW, DEU, 68161
Deutsche Rohstoff AG is a company that operates in the oil and gas production industry. It is also involved in mining ventures and develops its own metal deposits, with a particular focus on precious and special metals. The company has operations in various regions around the globe, including the United States, Australia, Western Europe, Canada, and Brazil. The Group primarily generates its revenue from producing crude oil and natural gas in the USA. Aside from revenue generated from the production of raw materials and associated rights such as royalties, the company's business model also includes the acquisition, development, and sale of raw material projects. It has several projects, including Cub Creek Energy, Elster Oil and Gas, Bright Rock Energy, Salt Creek Oil and Gas, and others.

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