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Boewe Systec AG (STU:BSY) Financial Strength : 0 (As of Dec. 2008)


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What is Boewe Systec AG Financial Strength?

Boewe Systec AG has the Financial Strength Rank of 0.

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.

Boewe Systec AG did not have earnings to cover the interest expense. Boewe Systec AG's debt to revenue ratio for the quarter that ended in Dec. 2008 was 0.52. As of today, Boewe Systec AG's Altman Z-Score is 0.00.


Competitive Comparison of Boewe Systec AG's Financial Strength

For the Specialty Industrial Machinery subindustry, Boewe Systec AG'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.


Boewe Systec AG's Financial Strength Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Boewe Systec AG's Financial Strength distribution charts can be found below:

* The bar in red indicates where Boewe Systec AG's Financial Strength falls into.



Boewe Systec AG 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:

Boewe Systec AG's Interest Expense for the months ended in Dec. 2008 was €-16.8 Mil. Its Operating Income for the months ended in Dec. 2008 was €-27.2 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2008 was €78.1 Mil.

Boewe Systec AG's Interest Coverage for the quarter that ended in Dec. 2008 is

Boewe Systec AG 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.

Boewe Systec AG's Debt to Revenue Ratio for the quarter that ended in Dec. 2008 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2008 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(156.265 + 78.08) / 450.236
=0.52

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.

Boewe Systec AG 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.


Boewe Systec AG  (STU:BSY) 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.

Boewe Systec AG has the Financial Strength Rank of 0.


Boewe Systec AG Financial Strength Related Terms

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Boewe Systec AG Business Description

Traded in Other Exchanges
N/A
Address
Werner-von-Siemens-Street 1, Augsburg, DEU, 86159
Boewe Systec AG is a solutions provider for printing and mail processing centres. The company manufactures and markets inserting systems. It also offers card mailing systems, letter and flats sorting, intralogistics and reading technologies in the field of document processing. It provides services to classic transactional or direct mail applications, modern mail processing centers, intralogistics or serialization in the pharmaceutical industry.