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Hero MotoCorp (Hero MotoCorp) Financial Strength : 9 (As of Dec. 2023)


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What is Hero MotoCorp Financial Strength?

Hero MotoCorp has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Hero MotoCorp Ltd 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.

Hero MotoCorp's Interest Coverage for the quarter that ended in Dec. 2023 was 52.38. Hero MotoCorp's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.00. As of today, Hero MotoCorp's Altman Z-Score is 8.50.


Competitive Comparison of Hero MotoCorp's Financial Strength

For the Auto Manufacturers subindustry, Hero MotoCorp'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.


Hero MotoCorp's Financial Strength Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Hero MotoCorp's Financial Strength distribution charts can be found below:

* The bar in red indicates where Hero MotoCorp's Financial Strength falls into.



Hero MotoCorp 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:

Hero MotoCorp's Interest Expense for the months ended in Dec. 2023 was $-2.73 Mil. Its Operating Income for the months ended in Dec. 2023 was $143.05 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $0.00 Mil.

Hero MotoCorp'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*143.051/-2.731
=52.38

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

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

Hero MotoCorp'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 + 0) / 4702.648
=0.00

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.

Hero MotoCorp has a Z-score of 8.50, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 8.5 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.


Hero MotoCorp  (GREY:HRTQY) 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.

Hero MotoCorp has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.


Hero MotoCorp Financial Strength Related Terms

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Hero MotoCorp (Hero MotoCorp) Business Description

Traded in Other Exchanges
Address
Nelson Mandela Road, The Grand Plaza, Plot No. 2, Vasant Kunj - Phase -II, New Delhi, IND, 110070
Hero MotoCorp Ltd is a motorcycle manufacturing company domiciled in India. The company manufactures and distributes motorcycles, scooters, and related spare parts. Sales of motorcycles comprise the largest contribution to consolidated revenue, followed by scooter sales. While Hero MotoCorp derives the vast majority of revenue from domestic operations, the company also has operations in Latin America, South Asia, Africa, and the Middle East. Hero MotoCorp principally manufactures and assembles production domestically. The Company primarily operates in the automotive segment. The automotive segment includes all activities related to development, design, manufacture, assembly and sale of vehicles, as well as sale of related parts and accessories.

Hero MotoCorp (Hero MotoCorp) Headlines

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