TotalEnergies Marketing Nigeria (NSA:TOTL) Financial Strength : 6 (As of Dec. 2023)

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What is TotalEnergies Marketing Nigeria Financial Strength?

TotalEnergies Marketing Nigeria has the Financial Strength Rank of 6.

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.

TotalEnergies Marketing Nigeria's Interest Coverage for the quarter that ended in Dec. 2023 was 1.68. TotalEnergies Marketing Nigeria's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.10. As of today, TotalEnergies Marketing Nigeria's Altman Z-Score is 2.59.

Competitive Comparison of TotalEnergies Marketing Nigeria's Financial Strength

For the Oil & Gas Refining & Marketing subindustry, TotalEnergies Marketing Nigeria'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.

TotalEnergies Marketing Nigeria's Financial Strength Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, TotalEnergies Marketing Nigeria's Financial Strength distribution charts can be found below:

* The bar in red indicates where TotalEnergies Marketing Nigeria's Financial Strength falls into.

TotalEnergies Marketing Nigeria 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:

TotalEnergies Marketing Nigeria's Interest Expense for the months ended in Dec. 2023 was ₦-4,575 Mil. Its Operating Income for the months ended in Dec. 2023 was ₦7,690 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was ₦469 Mil.

TotalEnergies Marketing Nigeria's Interest Coverage for the quarter that ended in Dec. 2023 is

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	7689.932	/	-4574.996
	=	1.68

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

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

TotalEnergies Marketing Nigeria's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio	=	Total Debt (Q: Dec. 2023 )			/	Revenue
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Revenue
	=	(85024.745	+	469.398)	/	853500.936
	=	0.10

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.

TotalEnergies Marketing Nigeria has a Z-score of 2.59, indicating it is in Grey Zones. This implies that TotalEnergies Marketing Nigeria is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.59 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* 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.

TotalEnergies Marketing Nigeria (NSA:TOTL) 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.

TotalEnergies Marketing Nigeria has the Financial Strength Rank of 6.

TotalEnergies Marketing Nigeria Financial Strength Related Terms

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TotalEnergies Marketing Nigeria Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » TotalEnergies Marketing Nigeria PLC (NSA:TOTL) » Definitions » Financial Strength

Comparable Companies

Traded in Other Exchanges

N/A

Address

4 Churchgate Street, P.M.B. 2134, Total House, Victoria Island, Lagos, NGA

Website

https://www.services.totalenergies.ng

TotalEnergies Marketing Nigeria PLC is engaged in the marketing and distribution of petroleum products. Its operating segment includes the Network segment includes sales to service stations. The General Trade segment is engaged in sales to corporate customers excluding the customers in the aviation industry. Its Aviation segment is engaged in sales to aviation industry customers. The company generates maximum revenue from the Network segment. Geographically, it derives a majority of revenue from Nigeria. Its products categories include Motorcycle Lubricants, Engine Oil for Cars, Engine Oils for Heavy-Duty Engines, and Other Lubricants.