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Italcementi SpA (Italcementi SpA) Financial Strength : 0 (As of Jun. 2016)


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What is Italcementi SpA Financial Strength?

Italcementi SpA 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.

Italcementi SpA did not have earnings to cover the interest expense. Italcementi SpA's debt to revenue ratio for the quarter that ended in Jun. 2016 was 0.63. As of today, Italcementi SpA's Altman Z-Score is 0.00.


Competitive Comparison of Italcementi SpA's Financial Strength

For the Building Materials subindustry, Italcementi SpA'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.


Italcementi SpA's Financial Strength Distribution in the Building Materials Industry

For the Building Materials industry and Basic Materials sector, Italcementi SpA's Financial Strength distribution charts can be found below:

* The bar in red indicates where Italcementi SpA's Financial Strength falls into.



Italcementi SpA 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:

Italcementi SpA's Interest Expense for the months ended in Jun. 2016 was $-34 Mil. Its Operating Income for the months ended in Jun. 2016 was $-293 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2016 was $1,751 Mil.

Italcementi SpA's Interest Coverage for the quarter that ended in Jun. 2016 is

Italcementi SpA did not have earnings to cover the interest expense.

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

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

Italcementi SpA's Debt to Revenue Ratio for the quarter that ended in Jun. 2016 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2016 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1144.583 + 1751.078) / 4625.452
=0.63

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.

Italcementi SpA 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.


Italcementi SpA  (OTCPK:ITAMF) 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.

Italcementi SpA has the Financial Strength Rank of 0.


Italcementi SpA Financial Strength Related Terms

Thank you for viewing the detailed overview of Italcementi SpA's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Italcementi SpA (Italcementi SpA) Business Description

Traded in Other Exchanges
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Address
Italcementi SpA was incorporated in 1864. It is a cement manufacturing company. The Company engages in manufacturing and distributing of three main product lines, including cement, aggregates, and ready mixed concrete. The Company's business segments are operations relating to the production and sale of cement and clinker; operations relating to construction materials: ready mixed concrete and aggregates and other operations such as: transport, engineering, e-business and energy. The Company operates its business in Albania, Belgium, Bulgaria, Canada, Cyprus, Egypt, France, Gambia, Greece, India, Italy, Kazakhstan, Morocco, Mauritania, Spain, Sri Lanka, Thailand, Turkey, and the United States.

Italcementi SpA (Italcementi SpA) Headlines

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