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Esprinet SpA (STU:EP4A) Financial Strength : 6 (As of Mar. 2024)


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What is Esprinet SpA Financial Strength?

Esprinet SpA 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.

Esprinet SpA's Interest Coverage for the quarter that ended in Mar. 2024 was 1.89. Esprinet SpA's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.03. As of today, Esprinet SpA's Altman Z-Score is 1.80.


Competitive Comparison of Esprinet SpA's Financial Strength

For the Electronics & Computer Distribution subindustry, Esprinet SpA'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.


Esprinet SpA's Financial Strength Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Esprinet SpA's Financial Strength distribution charts can be found below:

* The bar in red indicates where Esprinet SpA's Financial Strength falls into.



Esprinet SpA 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:

Esprinet SpA's Interest Expense for the months ended in Mar. 2024 was €-5 Mil. Its Operating Income for the months ended in Mar. 2024 was €9 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was €97 Mil.

Esprinet SpA's Interest Coverage for the quarter that ended in Mar. 2024 is

Interest Coverage=-1*Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*8.674/-4.585
=1.89

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

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

Esprinet SpA's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(11.808 + 96.601) / 3704.804
=0.03

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.

Esprinet SpA has a Z-score of 1.80, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.8 is in distress zone. This implies bankruptcy 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.


Esprinet SpA  (STU:EP4A) 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.

Esprinet SpA has the Financial Strength Rank of 6.


Esprinet SpA Financial Strength Related Terms

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


Esprinet SpA (STU:EP4A) Business Description

Traded in Other Exchanges
Address
Via Energy Park, 20, Vimercate, ITA, 20871
Esprinet SpA is engaged in the wholesale distribution of IT and consumer electronics in Italy and Spain. Its is especially focused on delivering technology to resellers mainly addressing the small-to-midsize businesses (SMB). The companystructures its business into three sectors: business-to-business (B2B) distribution of information technology (IT) and consumer electronics; business-to-consumer (B2C) distribution of IT and consumer electronics, and business-to-business (B2B) distribution of microelectronic components. The company generates most of its revenue from Italian operations.

Esprinet SpA (STU:EP4A) Headlines

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