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Shoppers Drug Mart (FRA:SDZ) Financial Strength : 0 (As of Dec. 2013)


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What is Shoppers Drug Mart Financial Strength?

Shoppers Drug Mart 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.

Shoppers Drug Mart's Interest Coverage for the quarter that ended in Dec. 2013 was 21.04. Shoppers Drug Mart's debt to revenue ratio for the quarter that ended in Dec. 2013 was 0.09. As of today, Shoppers Drug Mart's Altman Z-Score is 0.00.


Competitive Comparison of Shoppers Drug Mart's Financial Strength

For the Pharmaceutical Retailers subindustry, Shoppers Drug Mart'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.


Shoppers Drug Mart's Financial Strength Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Shoppers Drug Mart's Financial Strength distribution charts can be found below:

* The bar in red indicates where Shoppers Drug Mart's Financial Strength falls into.



Shoppers Drug Mart 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:

Shoppers Drug Mart's Interest Expense for the months ended in Dec. 2013 was €-8 Mil. Its Operating Income for the months ended in Dec. 2013 was €164 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2013 was €340 Mil.

Shoppers Drug Mart's Interest Coverage for the quarter that ended in Dec. 2013 is

Interest Coverage=-1*Operating Income (Q: Dec. 2013 )/Interest Expense (Q: Dec. 2013 )
=-1*163.852/-7.787
=21.04

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

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

Shoppers Drug Mart's Debt to Revenue Ratio for the quarter that ended in Dec. 2013 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2013 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(353.786 + 340.322) / 7538.864
=0.09

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.

Shoppers Drug Mart has a Z-score of 0.00, indicating it is in Distress Zones. This implies bankrupcy 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.


Shoppers Drug Mart  (FRA:SDZ) 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.

Shoppers Drug Mart has the Financial Strength Rank of 0.


Shoppers Drug Mart Financial Strength Related Terms

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Shoppers Drug Mart (FRA:SDZ) Business Description

Traded in Other Exchanges
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Address
Shoppers Drug Mart Corporation was founded in 1962. The Company is the licensor of full-service retail drug stores operating under the name Shoppers Drug Mart (Pharmaprix in Québec). The stores are owned and operated by the Company's licensed Associate-owners who have helped build a brand that is synonymous with exceptional service, value and trust. The Company also licenses or owns more than 55 medical clinic pharmacies operating under the name Shoppers Simply Pharmacy (Pharmaprix Simplement Santé in Québec) and six luxury beauty destinations operating as Murale. The Company owns and operates 62 Shoppers Home Health Care stores, which are engaged in the sale and service of assisted-living devices, medical equipment, home-care products and durable mobility equipment to institutional and retail customers. In addition to its retail store network, the Company owns Shoppers Drug Mart Specialty Health Network Inc., a provider of specialty drug distribution, pharmacy and comprehensive patient support services, and MediSystem Technologies Inc., a provider of pharmaceutical products and services to long-term care facilities.

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