What is V-Mart Retail Financial Strength?
V-Mart Retail has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
V-Mart Retail Ltd displays poor financial strength. Usually, this is caused by too much debt for the company.
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.
V-Mart Retail did not have earnings to cover the interest expense.
V-Mart Retail's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.52.
As of today, V-Mart Retail's Altman Z-Score is 2.34.
Competitive Comparison of V-Mart Retail's Financial Strength
For the Department Stores subindustry, V-Mart Retail'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.
V-Mart Retail's Financial Strength Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, V-Mart Retail's Financial Strength distribution charts can be found below:
* The bar in red indicates where V-Mart Retail's Financial Strength falls into.
V-Mart Retail 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:
V-Mart Retail's Interest Expense for the
months ended in Mar. 2024 was ₹-359 Mil. Its Operating Income for the
months ended in Mar. 2024 was ₹-205 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ₹11,935 Mil.
V-Mart Retail's Interest Coverage for the quarter that ended in Mar. 2024 is
| V-Mart Retail did not have earnings to cover the interest expense. |
The higher the ratio, the stronger the company's financial strength is.
2. Debt to revenue ratio. The lower, the better.
V-Mart Retail's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is
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.
V-Mart Retail has a Z-score of 2.34, indicating it is in Grey Zones. This implies that V-Mart Retail 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 2.34 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.
V-Mart Retail (NSE:VMART) Business Description
Traded in Other Exchanges
Address
Plot No. 862, Udyog Vihar, Phase V, Industrial Area, Gurugram, HR, IND, 122016
V-Mart Retail Ltd is engaged in retailing of readymade garments, accessories and other products. It is involved in the business of Value Retailing through the chain of stores situated at various cities in India. It provides a range of apparels and accessories for men, women, boys, girls, and toddlers. The company's general merchandise includes Footwear, Home furnishing, Kitchenware, Toys and games, Bags and luggage and Crockery. The company has two segments such as Retail Trade which includes Domestic sale to customer at stores and Digital Marketplace includes Commission and other income by providing Limeroad platform to vendors. It generates majority of its revenue from Retail Trade segment.
V-Mart Retail (NSE:VMART) Headlines
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