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LFCBY (Lifco AB) Financial Strength : 7 (As of Mar. 2025)


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What is Lifco AB Financial Strength?

Lifco AB has the Financial Strength Rank of 7.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and 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.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Lifco AB's Interest Coverage for the quarter that ended in Mar. 2025 was 11.99. Lifco AB's debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.35. As of today, Lifco AB's Altman Z-Score is 6.08.


Competitive Comparison of Lifco AB's Financial Strength

For the Conglomerates subindustry, Lifco AB'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.


Lifco AB's Financial Strength Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Lifco AB's Financial Strength distribution charts can be found below:

* The bar in red indicates where Lifco AB's Financial Strength falls into.


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Lifco AB 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:

Lifco AB's Interest Expense for the months ended in Mar. 2025 was $-10 Mil. Its Operating Income for the months ended in Mar. 2025 was $122 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was $355 Mil.

Lifco AB's Interest Coverage for the quarter that ended in Mar. 2025 is

Interest Coverage=-1*Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*121.881/-10.165
=11.99

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

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

Lifco AB's Debt to Revenue Ratio for the quarter that ended in Mar. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(593.025 + 354.788) / 2736.856
=0.35

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.

Lifco AB has a Z-score of 6.08, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 6.08 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.


Lifco AB  (OTCPK:LFCBY) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Lifco AB has the Financial Strength Rank of 7.


Lifco AB Financial Strength Related Terms

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


Lifco AB Business Description

Traded in Other Exchanges
Address
Verkmastaregatan 1, Enkoping, SWE, SE-745 85
Lifco AB owns niche subsidiaries in a variety of industries, with a focus on three business areas: dental, demolition and tools, and systems solutions. The dental business supplies consumables, equipment, and technical service to dentists. The demolition and tools business manufactures and sells equipment for the construction and demolition industry, including demolition robots and crane attachments. The systems solutions business provides interiors for service vehicles, contract manufacturing, environmental technology, sawmill equipment and construction materials. The Group's material revenue streams arising from the sale of goods comprise sales of dental products, tools and machinery, infrastructure products, environmental technology, special products and transportation products.

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