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South West Pinnacle Exploration (NSE:SOUTHWEST) Financial Strength : 5 (As of Dec. 2023)


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What is South West Pinnacle Exploration Financial Strength?

South West Pinnacle Exploration has the Financial Strength Rank of 5.

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.

South West Pinnacle Exploration's Interest Coverage for the quarter that ended in Dec. 2023 was 2.76. South West Pinnacle Exploration's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.00. As of today, South West Pinnacle Exploration's Altman Z-Score is 2.73.


Competitive Comparison of South West Pinnacle Exploration's Financial Strength

For the Oil & Gas Equipment & Services subindustry, South West Pinnacle Exploration'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.


South West Pinnacle Exploration's Financial Strength Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, South West Pinnacle Exploration's Financial Strength distribution charts can be found below:

* The bar in red indicates where South West Pinnacle Exploration's Financial Strength falls into.



South West Pinnacle Exploration 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:

South West Pinnacle Exploration's Interest Expense for the months ended in Dec. 2023 was ₹-24 Mil. Its Operating Income for the months ended in Dec. 2023 was ₹67 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was ₹0 Mil.

South West Pinnacle Exploration'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*67.033/-24.252
=2.76

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

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

South West Pinnacle Exploration'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
=(0 + 0) / 1686.152
=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.

South West Pinnacle Exploration has a Z-score of 2.73, indicating it is in Grey Zones. This implies that South West Pinnacle Exploration 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 2.73 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.


South West Pinnacle Exploration  (NSE:SOUTHWEST) 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.

South West Pinnacle Exploration has the Financial Strength Rank of 5.


South West Pinnacle Exploration Financial Strength Related Terms

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South West Pinnacle Exploration (NSE:SOUTHWEST) Business Description

Traded in Other Exchanges
Address
Siddhartha House, Plot No. 15, Ground Floor, Sector-44, Gurgaon, HR, IND, 122003
South West Pinnacle Exploration Ltd is an India-based exploration services company. It provides end to end drilling, exploration, and allied services to coal, ferrous, non-ferrous, and atomic and base metal mining and water and unconventional energy industries. The company offers consultancy for geological field services and allied services. In addition, it also renders exploration services including geophysical logging, surface geophysical and topographic surveys. The company also administers services such as aquifer mapping, coal bed methane exploration and production, coal and mineral exploration, and workover rig services. It has a business presence in India and the Overseas market.

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