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Navneet Education (NSE:NAVNETEDUL) Financial Strength : 8 (As of Mar. 2025)


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What is Navneet Education Financial Strength?

Navneet Education has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Navneet Education Ltd shows strong financial strength.

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.

Navneet Education's Interest Coverage for the quarter that ended in Mar. 2025 was 12.74. Navneet Education's debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.12. As of today, Navneet Education's Altman Z-Score is 6.45.


Competitive Comparison of Navneet Education's Financial Strength

For the Publishing subindustry, Navneet Education'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.


Navneet Education's Financial Strength Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Navneet Education's Financial Strength distribution charts can be found below:

* The bar in red indicates where Navneet Education's Financial Strength falls into.


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Navneet Education 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:

Navneet Education's Interest Expense for the months ended in Mar. 2025 was ₹-47 Mil. Its Operating Income for the months ended in Mar. 2025 was ₹600 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was ₹575 Mil.

Navneet Education's Interest Coverage for the quarter that ended in Mar. 2025 is

Interest Coverage=-1*Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*600.1/-47.1
=12.74

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

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

Navneet Education's Debt to Revenue Ratio for the quarter that ended in Mar. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1422.2 + 574.6) / 17351.2
=0.12

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.

Navneet Education has a Z-score of 6.45, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 6.45 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.


Navneet Education  (NSE:NAVNETEDUL) 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.

Navneet Education has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.


Navneet Education Financial Strength Related Terms

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Navneet Education Business Description

Traded in Other Exchanges
Address
Bhavani Shankar Road, Navneet Bhavan, Near Shardashram Society, Dadar (West), Mumbai, MH, IND, 400028
Navneet Education Ltd is engaged in the publication of knowledge-based information in educational and general books as well as in electronic media and manufacturing of paper and other stationery items. The company provides educational syllabus-based content in print & digital mediums, manufactures scholastic paper stationery, and publishes general and children's books, and also Scholastic Non-Paper Stationary products including various titles in the Children and General books category, which are not based on the syllabus. It markets its products under the brand names Navneet, Vikas, Gala, Grafalco, FfUuNn, and Boss. The company manages its business in segments namely Publication, Stationery, and Others. It has a business presence in India and other countries.

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