RGFC (The Real Good Food Co) Financial Strength: 2 (As of Sep. 2023) — Near Median

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RGFC The Real Good Food Co Inc RGFC
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What is The Real Good Food Co Financial Strength?

The Real Good Food Co RGFC 14 Financial Strength is 2 as of Sep. 2023, which is at its 10-year median of 2.00. GuruFocus rates RGFC with a GF Score™ of 14/100.

The Real Good Food Co has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. 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 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.

The Real Good Food Co did not have earnings to cover the interest expense. The Real Good Food Co's debt to revenue ratio for the quarter that ended in Sep. 2023 was 0.65. As of today, The Real Good Food Co's Altman Z-Score is 0.00.


The Real Good Food Co  (OTCPK:RGFC) 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.

The Real Good Food Co has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


The Real Good Food Co Financial Strength Related Terms


RGFC vs PLAG, NAII, FARM: Financial Strength Comparison

For the Packaged Foods subindustry, The Real Good Food Co'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.


The Real Good Food Co Financial Strength vs Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, The Real Good Food Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where The Real Good Food Co's Financial Strength falls into.


RGFC
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The Real Good Food Co Inc RGFC
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The Real Good Food Co 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:

The Real Good Food Co's Interest Expense for the months ended in Sep. 2023 was $-4.3 Mil. Its Operating Income for the months ended in Sep. 2023 was $-8.9 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was $136.7 Mil.

The Real Good Food Co's Interest Coverage for the quarter that ended in Sep. 2023 is

The Real Good Food Co 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.

The Real Good Food Co's Debt to Revenue Ratio for the quarter that ended in Sep. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(6.913 + 136.695) / 222.26
=0.65

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.

The Real Good Food Co has a Z-score of 0.00, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

* 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.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 2 mean?
The Real Good Food Co (RGFC) has a Financial Strength of 2 as of Sep. 2023. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on The Real Good Food Co and its competitors. This is near median its historical median of 2.00. Over the past decade, The Real Good Food Co's Financial Strength has ranged from 2.00 to 4.00.
Is The Real Good Food Co's Financial Strength too high?
The Real Good Food Co's current Financial Strength of 2 is near median its 10-year median of 2.00. Over the past 10 years, this metric has ranged from a low of 2.00 to a high of 4.00. Overall, The Real Good Food Co has a GF Score™ of 14/100, reflecting its overall financial health beyond just this single metric.
How does The Real Good Food Co's Financial Strength compare to PLAG and NAII?
The Real Good Food Co's Financial Strength of 2 can be compared against companies in the Consumer Packaged Goods industry. Historically, The Real Good Food Co's own Financial Strength has ranged from 2.00 to 4.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Consumer Packaged Goods company?
A good Financial Strength depends on the Consumer Packaged Goods industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on The Real Good Food Co and its competitors. The Real Good Food Co's current Financial Strength is 2, which is near median its own 10-year median of 2.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Real Good Food Co stock overvalued right now?
The Real Good Food Co (RGFC) has a current Financial Strength of 2. The current Financial Strength is 2, which is near median its 10-year median of 2.00. The Real Good Food Co's overall GF Score™ is 14/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For The Real Good Food Co (RGFC), the current Financial Strength is 2 as of Sep. 2023. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

The Real Good Food Co Business Description

Address 3 Executive Campus, Suite 155, Cherry Hill, NJ, USA, 08002
The Real Good Food Co Inc is a frozen food company that develops, markets, and manufactures foods high in protein, low in sugar, and gluten- and grain-free. The company produces breakfast sandwiches, entrees, and other products, primarily sold in the U.S. frozen food category. All of its revenue is derived from the United States.
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Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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