Nordea Bank Polska (LTS:0LRW) Financial Strength: 0 (As of Sep. 2014)

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Director of Data and Quant Analytics at GuruFocus
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What is Nordea Bank Polska Financial Strength?

Nordea Bank Polska has the Financial Strength Rank of 0.

Warning Sign:

Nordea Bank Polska SA displays poor financial strength. Usually this is caused by too much debt for the company.

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.

GuruFocus does not calculate Nordea Bank Polska's interest coverage with the available data. Nordea Bank Polska's debt to revenue ratio for the quarter that ended in Sep. 2014 was 0.00. Altman Z-Score does not apply to banks and insurance companies.


Nordea Bank Polska  (LTS:0LRW) 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.

Nordea Bank Polska has the Financial Strength Rank of 0.


Nordea Bank Polska Financial Strength Related Terms


Nordea Bank Polska 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:

Nordea Bank Polska's Interest Expense for the months ended in Sep. 2014 was £-14.65 Mil. Its Operating Income for the months ended in Sep. 2014 was £14.01 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2014 was £0.00 Mil.

Nordea Bank Polska's Interest Coverage for the quarter that ended in Sep. 2014 is

Interest Coverage=-1*Operating Income (Q: Sep. 2014 )/Interest Expense (Q: Sep. 2014 )
=-1*14.014/-14.651
=0.96

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

Warning Sign:

Ben Graham prefers companies interest coverage is at least 5. Nordea Bank Polska SAs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

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

Nordea Bank Polska's Debt to Revenue Ratio for the quarter that ended in Sep. 2014 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2014 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 0) / 150.18
=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.

Altman Z-Score does not apply to banks and insurance companies.

* 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.


Nordea Bank Polska Business Description

Nordea Bank Polska S.A. is engaged in banking and financial services via Internet, telephone, SMS, and the branch network. Its services include Nordea account, the account eFirma and eFirma and low-interest loans and deposits.