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Buhler Industries (FRA:X0Z) Financial Strength : 5 (As of Mar. 2024)


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What is Buhler Industries Financial Strength?

Buhler Industries 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.

Buhler Industries's Interest Coverage for the quarter that ended in Mar. 2024 was 0.57. Buhler Industries's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.03. As of today, Buhler Industries's Altman Z-Score is 2.50.


Competitive Comparison of Buhler Industries's Financial Strength

For the Farm & Heavy Construction Machinery subindustry, Buhler Industries'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.


Buhler Industries's Financial Strength Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, Buhler Industries's Financial Strength distribution charts can be found below:

* The bar in red indicates where Buhler Industries's Financial Strength falls into.



Buhler Industries 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:

Buhler Industries's Interest Expense for the months ended in Mar. 2024 was €-1.7 Mil. Its Operating Income for the months ended in Mar. 2024 was €0.9 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was €0.0 Mil.

Buhler Industries's Interest Coverage for the quarter that ended in Mar. 2024 is

Interest Coverage=-1*Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*0.938/-1.652
=0.57

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

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

Buhler Industries'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
=(6.069 + 0) / 193.288
=0.03

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.

Buhler Industries has a Z-score of 2.50, indicating it is in Grey Zones. This implies that Buhler Industries 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 2.5 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.


Buhler Industries  (FRA:X0Z) 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.

Buhler Industries has the Financial Strength Rank of 5.


Buhler Industries Financial Strength Related Terms

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Buhler Industries (FRA:X0Z) Business Description

Traded in Other Exchanges
Address
1260 Clarence Avenue, Winnipeg, MB, CAN, R3T 1T2
Buhler Industries Inc is engaged in the manufacturing of agricultural equipment. Its factories located in Morden and Winnipeg and Vegreville and Willmar, build tractors, sprayers, front-end loaders, augers, snowblowers, mowers, seeding and tillage equipment, and compact implements. Its brand portfolio comprises Farm King, Ezee-On, Allied, Inland, and Versatile. Also, the company maintains several well-stocked parts warehouses. Its geographical segments are Canada, the United States, CIS(Commonwealth of Independent States), and others. The company derives a majority of its revenue from the United States.

Buhler Industries (FRA:X0Z) Headlines

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