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Mauritius Cosmetics (XMAU:MCOS) Financial Strength : 6 (As of Dec. 2022)


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What is Mauritius Cosmetics Financial Strength?

Mauritius Cosmetics 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.

Mauritius Cosmetics's Interest Coverage for the quarter that ended in Dec. 2022 was 1.71. Mauritius Cosmetics's debt to revenue ratio for the quarter that ended in Dec. 2022 was 0.56. As of today, Mauritius Cosmetics's Altman Z-Score is 1.41.


Competitive Comparison of Mauritius Cosmetics's Financial Strength

For the Household & Personal Products subindustry, Mauritius Cosmetics'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.


Mauritius Cosmetics's Financial Strength Distribution in the Consumer Packaged Goods Industry

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

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



Mauritius Cosmetics 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:

Mauritius Cosmetics's Interest Expense for the months ended in Dec. 2022 was MUR-17.8 Mil. Its Operating Income for the months ended in Dec. 2022 was MUR30.4 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2022 was MUR172.8 Mil.

Mauritius Cosmetics's Interest Coverage for the quarter that ended in Dec. 2022 is

Interest Coverage=-1*Operating Income (Q: Dec. 2022 )/Interest Expense (Q: Dec. 2022 )
=-1*30.409/-17.785
=1.71

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

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

Mauritius Cosmetics'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
=(109.557 + 172.764) / 499.932
=0.56

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.

Mauritius Cosmetics has a Z-score of 1.41, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.41 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.


Mauritius Cosmetics  (XMAU:MCOS) 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.

Mauritius Cosmetics has the Financial Strength Rank of 6.


Mauritius Cosmetics Financial Strength Related Terms

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Mauritius Cosmetics (XMAU:MCOS) Business Description

Traded in Other Exchanges
N/A
Address
Bonne Terre, Vacoas, MUS, 73304
Mauritius Cosmetics Ltd is a Mauritius-based company mainly engaged in the manufacturing and distribution of consumer goods. It develops toothpaste under the brand name Dentamax. In addition to Dentamax toothpaste, the company also manufactures soap products, insect repellent products, Kamill cosmetic products under license from Burnus GMBH (Germany), and furniture care products from Poliboy Werke (Germany). The Company's principal activities are; The manufacture of toothpaste, cosmetic products, creams, household products, toiletries and perfumes; The distribution, retail and export of consumer goods, The rental of investment properties; and The investment in equity instruments. The firm generates revenue from the sale of toothpaste, beauty, hygienic, and maintenance products.

Mauritius Cosmetics (XMAU:MCOS) Headlines

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