GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Banque Nationale de Belgique SA (XBRU:BNB) » Definitions » Financial Strength

Banque Nationale de Belgique (XBRU:BNB) Financial Strength : 4 (As of Dec. 2023)


View and export this data going back to 2005. Start your Free Trial

What is Banque Nationale de Belgique Financial Strength?

Banque Nationale de Belgique has the Financial Strength Rank of 4.

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.

GuruFocus does not calculate Banque Nationale de Belgique's interest coverage with the available data. Banque Nationale de Belgique's debt to revenue ratio for the quarter that ended in Dec. 2023 was -13.18. Altman Z-Score does not apply to banks and insurance companies.


Banque Nationale de Belgique 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:

Banque Nationale de Belgique's Interest Expense for the months ended in Dec. 2023 was €-8,970.80 Mil. Its Operating Income for the months ended in Dec. 2023 was €0.00 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was €52,110.30 Mil.

Banque Nationale de Belgique's Interest Coverage for the quarter that ended in Dec. 2023 is

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

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

Banque Nationale de Belgique's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 52110.298) / -3953.922
=-13.18

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.

Altman Z-Score does not apply to banks and insurance companies.

* 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.


Banque Nationale de Belgique  (XBRU:BNB) 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.

Banque Nationale de Belgique has the Financial Strength Rank of 4.


Banque Nationale de Belgique Financial Strength Related Terms

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


Banque Nationale de Belgique (XBRU:BNB) Business Description

Traded in Other Exchanges
N/A
Address
Boulevard de Berlaimont 14, Brussels, BEL, 1000
Banque Nationale de Belgique SA, or the National Bank of Belgium, is the country's central bank. The bank does not operate like other banks whose chief objective is profit maximization for its shareholders. Its primary aim is to maintain price stability as well as supervision of the Belgian financial sector and other related tasks in the national interest. The most notable portion of assets on the balance sheet include securities held for monetary policy purposes. Other notable assets include other securities and net claims related to the allocation of euro banknotes within the Eurosystem. Net interest income is the overwhelming majority of net revenue.