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Nolato AB (Nolato AB) Financial Strength : 7 (As of Mar. 2024)


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What is Nolato AB Financial Strength?

Nolato AB has the Financial Strength Rank of 7.

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.

Nolato AB's Interest Coverage for the quarter that ended in Mar. 2024 was 12.55. Nolato AB's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.00. As of today, Nolato AB's Altman Z-Score is 3.81.


Competitive Comparison of Nolato AB's Financial Strength

For the Conglomerates subindustry, Nolato 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.


Nolato AB's Financial Strength Distribution in the Conglomerates Industry

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

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



Nolato 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:

Nolato AB's Interest Expense for the months ended in Mar. 2024 was $-1.7 Mil. Its Operating Income for the months ended in Mar. 2024 was $21.7 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $0.0 Mil.

Nolato AB's Interest Coverage for the quarter that ended in Mar. 2024 is

Interest Coverage=-1*Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*21.707/-1.729
=12.55

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

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

Nolato AB's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 0) / 938.212
=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.

Nolato AB has a Z-score of 3.81, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.81 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.


Nolato AB  (OTCPK:NLTBF) 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.

Nolato AB has the Financial Strength Rank of 7.


Nolato AB Financial Strength Related Terms

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Nolato AB (Nolato AB) Business Description

Traded in Other Exchanges
Address
Nolatovagen 32, Torekov, SWE, SE-269 78
Nolato AB is a Swedish company that develops and manufactures plastic, silicone, and thermoplastic elastomer products. The firm's operations are organized into three segments based on end market: Medical, which develops complex product systems, components, and packaging solutions for pharmaceuticals and supplements; Integrated, which develops subsystems for mobile phones; and Industrial, which develops systems for the automotive, hygiene, packaging, and furniture industries. Roughly a third of the firm's revenue is generated in the Rest of Europe.

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