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Schwalbchen Molkerei Jakob Berz AG (FRA:SMB) Financial Strength : 9 (As of Dec. 2023)


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What is Schwalbchen Molkerei Jakob Berz AG Financial Strength?

Schwalbchen Molkerei Jakob Berz AG has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Schwalbchen Molkerei Jakob Berz AG shows strong financial strength.

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.

Schwalbchen Molkerei Jakob Berz AG's Interest Coverage for the quarter that ended in Dec. 2023 was 30.69. Schwalbchen Molkerei Jakob Berz AG's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.01. As of today, Schwalbchen Molkerei Jakob Berz AG's Altman Z-Score is 5.21.


Competitive Comparison of Schwalbchen Molkerei Jakob Berz AG's Financial Strength

For the Packaged Foods subindustry, Schwalbchen Molkerei Jakob Berz 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.


Schwalbchen Molkerei Jakob Berz AG's Financial Strength Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Schwalbchen Molkerei Jakob Berz AG's Financial Strength distribution charts can be found below:

* The bar in red indicates where Schwalbchen Molkerei Jakob Berz AG's Financial Strength falls into.



Schwalbchen Molkerei Jakob Berz 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:

Schwalbchen Molkerei Jakob Berz AG's Interest Expense for the months ended in Dec. 2023 was €-0.3 Mil. Its Operating Income for the months ended in Dec. 2023 was €8.8 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was €3.0 Mil.

Schwalbchen Molkerei Jakob Berz AG's Interest Coverage for the quarter that ended in Dec. 2023 is

Interest Coverage=-1*Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*8.809/-0.287
=30.69

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

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

Schwalbchen Molkerei Jakob Berz AG's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 3.001) / 224.554
=0.01

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.

Schwalbchen Molkerei Jakob Berz AG has a Z-score of 5.21, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 5.21 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.


Schwalbchen Molkerei Jakob Berz AG  (FRA:SMB) 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.

Schwalbchen Molkerei Jakob Berz AG has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.


Schwalbchen Molkerei Jakob Berz AG Financial Strength Related Terms

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Schwalbchen Molkerei Jakob Berz AG (FRA:SMB) Business Description

Traded in Other Exchanges
N/A
Address
Bad Schwalbach, Bad Schwalbach, DEU, 65307
Schwalbchen Molkerei Jakob Berz AG is engaged in processing and distribution of milk and milk products, the wholesale of dairy products and related foodstuffs. The company acts as a regional brand supplier of fresh and long-life milk, as well as fresh produce such as yogurt, whipped cream, sour cream, natural and fruit quark, cream, and sponge cake under the name SCHWÄLBCHEN. Specialties such as the coffee beverage Caffreddo and ethnic items such as Ayran are marketed nationwide. The company is engaged in the wholesale consumer trade segment.