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Grupo RotoplasB de CV (Grupo RotoplasB de CV) Financial Strength : 6 (As of Mar. 2024)


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What is Grupo RotoplasB de CV Financial Strength?

Grupo RotoplasB de CV has the Financial Strength Rank of 6.

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.

Grupo RotoplasB de CV's Interest Coverage for the quarter that ended in Mar. 2024 was 3.52. Grupo RotoplasB de CV's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.40. As of today, Grupo RotoplasB de CV's Altman Z-Score is 3.10.


Competitive Comparison of Grupo RotoplasB de CV's Financial Strength

For the Pollution & Treatment Controls subindustry, Grupo RotoplasB de CV'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.


Grupo RotoplasB de CV's Financial Strength Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Grupo RotoplasB de CV's Financial Strength distribution charts can be found below:

* The bar in red indicates where Grupo RotoplasB de CV's Financial Strength falls into.



Grupo RotoplasB de CV 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:

Grupo RotoplasB de CV's Interest Expense for the months ended in Mar. 2024 was $-7.2 Mil. Its Operating Income for the months ended in Mar. 2024 was $25.4 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $247.1 Mil.

Grupo RotoplasB de CV'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*25.354/-7.197
=3.52

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

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

Grupo RotoplasB de CV'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
=(11.343 + 247.077) / 642.908
=0.40

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.

Grupo RotoplasB de CV has a Z-score of 3.10, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.1 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.


Grupo RotoplasB de CV  (OTCPK:GRPRF) 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.

Grupo RotoplasB de CV has the Financial Strength Rank of 6.


Grupo RotoplasB de CV Financial Strength Related Terms

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Grupo RotoplasB de CV (Grupo RotoplasB de CV) Business Description

Traded in Other Exchanges
Address
Calle Pedregal No. 24, Torre Virreyes, 19th Floor, Col. Molino del Rey, Delegation Miguel Hidalgo, Mexico, MEX, MEX, 11040
Grupo Rotoplas SAB de CV is a Mexican company which is engaged in the development and distribution of water solutions and sanitation in the Americas. It offers equipment for water storage, piping, purification and water treatment. The company also provides integrated systems for water treatment, distributed with added value services, such as installation and maintenance. Its operating segment includes Individual solutions and Comprehensive solutions. The company generates maximum revenue from the Individual solutions segment. Geographically, it derives a majority of revenue from Mexico.