Goldmanchs BDC (FRA:GSB) Financial Strength : 3 (As of Mar. 2024)

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What is Goldmanchs BDC Financial Strength?

Goldmanchs BDC 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.

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 Goldmanchs BDC's interest coverage with the available data. Goldmanchs BDC's debt to revenue ratio for the quarter that ended in Mar. 2024 was 9.96. Altman Z-Score does not apply to banks and insurance companies.

Goldmanchs BDC 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:

Goldmanchs BDC's Interest Expense for the months ended in Mar. 2024 was €-25.4 Mil. Its Operating Income for the months ended in Mar. 2024 was €0.0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was €1,684.3 Mil.

Goldmanchs BDC's Interest Coverage for the quarter that ended in Mar. 2024 is

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

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

Goldmanchs BDC's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is

Debt to Revenue Ratio	=	Total Debt (Q: Mar. 2024 )			/	Revenue
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Revenue
	=	(0	+	1684.345)	/	169.048
	=	9.96

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.

Goldmanchs BDC (FRA:GSB) 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.

Goldmanchs BDC 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.

Goldmanchs BDC Financial Strength Related Terms

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Goldmanchs BDC (FRA:GSB) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Goldman Sachs BDC Inc (FRA:GSB) » Definitions » Financial Strength

Comparable Companies

Traded in Other Exchanges

GSBD:USA GSB:Germany

Address

200 West Street, New York, NY, USA, 10282

Website

https://www.goldmansachsbdc.com

Goldman Sachs BDC Inc is a non-diversified, closed-end management investment company that elected to be regulated as a business development company focused on lending to middle-market companies. The investment objective is to generate current income and, to a lesser extent, capital appreciation primarily through direct originations of secured debt, including the first lien, unitranche and second lien debt, and unsecured debt. It invests primarily in U.S. middle-market companies such as banks and the public debt markets. The company's origination strategy focuses on leading the negotiation and structuring of the loans or securities in which it invests and holding the investments in its portfolio to maturity. It generates majority revenue in the form of interest income and dividend income.