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Hyundai Motor Co (LSE:HYUD) Financial Strength : 5 (As of Sep. 2024)


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What is Hyundai Motor Co Financial Strength?

Hyundai Motor Co 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.

Hyundai Motor Co's Interest Coverage for the quarter that ended in Sep. 2024 was 31.24. Hyundai Motor Co's debt to revenue ratio for the quarter that ended in Sep. 2024 was 0.80. As of today, Hyundai Motor Co's Altman Z-Score is 1.30.


Competitive Comparison of Hyundai Motor Co's Financial Strength

For the Auto Manufacturers subindustry, Hyundai Motor Co'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.


Hyundai Motor Co's Financial Strength Distribution in the Vehicles & Parts Industry

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

* The bar in red indicates where Hyundai Motor Co's Financial Strength falls into.



Hyundai Motor Co 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:

Hyundai Motor Co's Interest Expense for the months ended in Sep. 2024 was $-86 Mil. Its Operating Income for the months ended in Sep. 2024 was $2,691 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was $82,159 Mil.

Hyundai Motor Co's Interest Coverage for the quarter that ended in Sep. 2024 is

Interest Coverage=-1*Operating Income (Q: Sep. 2024 )/Interest Expense (Q: Sep. 2024 )
=-1*2690.993/-86.149
=31.24

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

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

Hyundai Motor Co's Debt to Revenue Ratio for the quarter that ended in Sep. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(21165.699 + 82159.338) / 129039.996
=0.80

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.

Hyundai Motor Co has a Z-score of 1.30, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.3 is in distress zone. This implies bankruptcy 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.


Hyundai Motor Co  (LSE:HYUD) 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.

Hyundai Motor Co has the Financial Strength Rank of 5.


Hyundai Motor Co Financial Strength Related Terms

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Hyundai Motor Co Business Description

Address
12, Heolleung-ro, Seocho-Gu, Seoul, KOR
Hyundai Motor Co is engaged in the manufacturing and distribution of motor vehicles and parts. The business of the group is operated through a vehicle, finance, and other segments. Its vehicle segment is engaged in the manufacturing and sale of motor vehicles. The finance segment operates vehicle financing, credit card processing, and other financing activities. Others segment includes the research and development, train manufacturing and other activities. The company derives majority of the revenue from vehicle segment.

Hyundai Motor Co Headlines

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