Credito RealB de CV Sofom ER (MEX:CREAL) Financial Strength: 0 (As of Sep. 2021)

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Director of Data and Quant Analytics at GuruFocus
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MEX:CREAL Credito Real SAB de CV Sofom ER MEX:CREAL
8 GF Score
Price MXN0.35
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What is Credito RealB de CV Sofom ER Financial Strength?

Credito RealB de CV Sofom ER has the Financial Strength Rank of 0.

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 Credito RealB de CV Sofom ER's interest coverage with the available data. Credito RealB de CV Sofom ER's debt to revenue ratio for the quarter that ended in Sep. 2021 was 7.04. Altman Z-Score does not apply to banks and insurance companies.

Credito RealB de CV Sofom ER  (MEX:CREAL) 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.

Credito RealB de CV Sofom ER has the Financial Strength Rank of 0.

Credito RealB de CV Sofom ER Financial Strength Related Terms

MEX:CREAL
8GF Score
Credito Real SAB de CV Sofom ER MEX:CREAL
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
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Credito RealB de CV Sofom ER 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:

Credito RealB de CV Sofom ER's Interest Expense for the months ended in Sep. 2021 was MXN-1,567 Mil. Its Operating Income for the months ended in Sep. 2021 was MXN0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2021 was MXN54,842 Mil.

Credito RealB de CV Sofom ER's Interest Coverage for the quarter that ended in Sep. 2021 is

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

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

Credito RealB de CV Sofom ER's Debt to Revenue Ratio for the quarter that ended in Sep. 2021 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2021 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 54841.7) / 7794.4
=7.04

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.

Credito RealB de CV Sofom ER Business Description

Address Avenida Insurgentes Sur No. 730, 20th Floor, Colonia Del Valle Norte, Del Benito Juarez, Mexico, MEX, MEX, 03103
Credito Real SAB de CV Sofom ER is a nonbanking financial institution in Mexico that focuses on consumer lending to low-income and middle-income customers. The company mainly makes payroll loans, durable goods loans, small business loans, group loans, and used-car loans.
8GF Score

Get the complete analysis for MEX:CREAL

Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

MXN0.35
Price