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SABIC Agri-Nutrient Co (SAU:2020) Financial Strength : 10 (As of Sep. 2024)


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What is SABIC Agri-Nutrient Co Financial Strength?

SABIC Agri-Nutrient Co has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

SABIC Agri-Nutrient Co shows strong financial strength.

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.

SABIC Agri-Nutrient Co's Interest Coverage for the quarter that ended in Sep. 2024 was 47.11. SABIC Agri-Nutrient Co's debt to revenue ratio for the quarter that ended in Sep. 2024 was 0.02. As of today, SABIC Agri-Nutrient Co's Altman Z-Score is 8.28.


Competitive Comparison of SABIC Agri-Nutrient Co's Financial Strength

For the Agricultural Inputs subindustry, SABIC Agri-Nutrient 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.


SABIC Agri-Nutrient Co's Financial Strength Distribution in the Agriculture Industry

For the Agriculture industry and Basic Materials sector, SABIC Agri-Nutrient Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where SABIC Agri-Nutrient Co's Financial Strength falls into.



SABIC Agri-Nutrient 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:

SABIC Agri-Nutrient Co's Interest Expense for the months ended in Sep. 2024 was ﷼-17 Mil. Its Operating Income for the months ended in Sep. 2024 was ﷼790 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was ﷼166 Mil.

SABIC Agri-Nutrient Co's Interest Coverage for the quarter that ended in Sep. 2024 is

Interest Coverage=-1*Operating Income (Q: Sep. 2024 )/Interest Expense (Q: Sep. 2024 )
=-1*789.764/-16.763
=47.11

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

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. SABIC Agri-Nutrient Co has enough cash to cover all of its debt. Its financial situation is stable.

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

SABIC Agri-Nutrient Co's Debt to Revenue Ratio for the quarter that ended in Sep. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(19.363 + 165.94) / 11400.28
=0.02

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.

SABIC Agri-Nutrient Co has a Z-score of 8.28, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 8.28 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.


SABIC Agri-Nutrient Co  (SAU:2020) 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.

SABIC Agri-Nutrient Co has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.


SABIC Agri-Nutrient Co Financial Strength Related Terms

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SABIC Agri-Nutrient Co Business Description

Traded in Other Exchanges
N/A
Address
P.O. Box 11044, Jubail Industrial City, SAU, 31961
SABIC Agri-Nutrient Co is engaged in the production, conversion, manufacturing, and trade of agri-nutrients and chemical products. Also, the Company is engaged in the marketing of agri-nutrient products of all types inside and outside KSA. The Group is organised into two segments; The Agri-Nutrients and The Petrochemicals. The majority of revenue is derived from the Agri-Nutrients segment.

SABIC Agri-Nutrient Co Headlines

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