What is Family Dollar Stores Financial Strength?
Family Dollar Stores has the Financial Strength Rank of 0.
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.
Family Dollar Stores's Interest Coverage for the quarter that ended in May. 2015 was 18.58.
Family Dollar Stores's debt to revenue ratio for the quarter that ended in May. 2015 was 0.04.
As of today, Family Dollar Stores's Altman Z-Score is 6.65.
Competitive Comparison of Family Dollar Stores's Financial Strength
For the Discount Stores subindustry, Family Dollar Stores'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.
Family Dollar Stores's Financial Strength Distribution in the Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Family Dollar Stores's Financial Strength distribution charts can be found below:
* The bar in red indicates where Family Dollar Stores's Financial Strength falls into.
Family Dollar Stores 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:
Family Dollar Stores's Interest Expense for the
months ended in May. 2015 was €-6 Mil. Its Operating Income for the
months ended in May. 2015 was €113 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in May. 2015 was €268 Mil.
Family Dollar Stores's Interest Coverage for the quarter that ended in May. 2015 is
The higher the ratio, the stronger the company's financial strength is.
2. Debt to revenue ratio. The lower, the better.
Family Dollar Stores's Debt to Revenue Ratio for the quarter that ended in May. 2015 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.
Family Dollar Stores has a Z-score of 6.65, indicating it is in Safe Zones. This implies the Z-Score 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.
Family Dollar Stores (FRA:FAY) Business Description
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Family Dollar Stores Inc was incorporated in November 1959. The Company provides consumers with a selection of competitively priced merchandise in convenient neighbourhood stores. Its merchandise assortment includes Consumables, Home Products, Apparel and Accessories, and Seasonal and Electronics. It classifies the combination of Home Products, Apparel and Accessories, and Seasonal and Electronics as Discretionary. It operates general merchandise retail discount stores in 46 states, serving the basic needs of customers primarily in the low- and middle-income brackets. The stores are supported by 11 distribution centers and one Store Support Center. It competes for sales and store locations in varying degrees with international, national, regional and local retailing establishments, other discount stores, department stores, variety stores, dollar stores, discount clothing stores, drug stores, grocery stores, convenience stores, outlet stores, warehouse stores and other stores. The Company's trademark includes Family Dollar and Family Dollar Stores. Its business is subject to federal, state, local, and international laws, rules, and regulations, such as state and local wage and hour laws, anti-corruption laws, import and export laws, unclaimed property laws, and many others.
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