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Mountain Alliance AG (STU:ECF) Financial Strength : 6 (As of Dec. 2022)


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What is Mountain Alliance AG Financial Strength?

Mountain Alliance AG has the Financial Strength Rank of 6.

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.

Mountain Alliance AG did not have earnings to cover the interest expense. Mountain Alliance AG's debt to revenue ratio for the quarter that ended in Dec. 2022 was 0.27. As of today, Mountain Alliance AG's Altman Z-Score is 0.00.


Competitive Comparison of Mountain Alliance AG's Financial Strength

For the Internet Retail subindustry, Mountain Alliance 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.


Mountain Alliance AG's Financial Strength Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Mountain Alliance AG's Financial Strength distribution charts can be found below:

* The bar in red indicates where Mountain Alliance AG's Financial Strength falls into.



Mountain Alliance 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:

Mountain Alliance AG's Interest Expense for the months ended in Dec. 2022 was €-0.06 Mil. Its Operating Income for the months ended in Dec. 2022 was €-0.70 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2022 was €0.85 Mil.

Mountain Alliance AG's Interest Coverage for the quarter that ended in Dec. 2022 is

Mountain Alliance 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.

Mountain Alliance AG's Debt to Revenue Ratio for the quarter that ended in Dec. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(2.24 + 0.852) / 11.354
=0.27

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.

Mountain Alliance 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.


Mountain Alliance AG  (STU:ECF) 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.

Mountain Alliance AG has the Financial Strength Rank of 6.


Mountain Alliance AG Financial Strength Related Terms

Thank you for viewing the detailed overview of Mountain Alliance AG's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Mountain Alliance AG (STU:ECF) Business Description

Traded in Other Exchanges
N/A
Address
Bavariaring 17, Munchen, DEU, 80336
Mountain Alliance AG engages in the e-commerce services and brands business in Germany. It offers a range of services along the e-commerce value chain from online marketing to Web development and logistics primarily to third-party customers. The company operates online shops for specific brands, offers Internet and television advertising and fulfillment services, and other services. Ecommerce Alliance operates in Germany and elsewhere in Europe.

Mountain Alliance AG (STU:ECF) Headlines