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Wawel (WAR:WWL) Financial Strength : 10 (As of Dec. 2024)


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What is Wawel Financial Strength?

Wawel has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Wawel SA shows strong financial strength.

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.

Wawel's Interest Coverage for the quarter that ended in Dec. 2024 was 387.83. Wawel's debt to revenue ratio for the quarter that ended in Dec. 2024 was 0.01. As of today, Wawel's Altman Z-Score is 5.65.


Competitive Comparison of Wawel's Financial Strength

For the Confectioners subindustry, Wawel'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.


Wawel's Financial Strength Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Wawel's Financial Strength distribution charts can be found below:

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


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Wawel 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:

Wawel's Interest Expense for the months ended in Dec. 2024 was zł-0.1 Mil. Its Operating Income for the months ended in Dec. 2024 was zł35.7 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was zł7.5 Mil.

Wawel's Interest Coverage for the quarter that ended in Dec. 2024 is

Interest Coverage=-1*Operating Income (Q: Dec. 2024 )/Interest Expense (Q: Dec. 2024 )
=-1*35.68/-0.092
=387.83

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. Wawel SA has enough cash to cover all of its debt. Its financial situation is stable.

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

Wawel's Debt to Revenue Ratio for the quarter that ended in Dec. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1.558 + 7.495) / 938.36
=0.01

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.

Wawel has a Z-score of 5.65, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 5.65 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.


Wawel  (WAR:WWL) 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.

Wawel has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.


Wawel Financial Strength Related Terms

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


Wawel Business Description

Traded in Other Exchanges
Address
ul. Wladyslawa Warnenczyka 14, Krakow, POL, 30-520
Wawel SA manufactures and sells chocolate and other confectionery products under the Wawel brand. The chocolate sales account majorly to the company's total revenue. Its products are filled chocolate, chocolate-coated candies, hard candies, stuffed jellies, candies, milk fudge, tofflairs, mint tablets, filled caramels, and others. The company sells its products to retail and discount chains in Poland. It also exports its products to other countries.

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