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Vivo Energy Mauritius (XMAU:VIVOENERGY) Financial Strength : 5 (As of Dec. 2023)


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What is Vivo Energy Mauritius Financial Strength?

Vivo Energy Mauritius has the Financial Strength Rank of 5.

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.

Vivo Energy Mauritius's Interest Coverage for the quarter that ended in Dec. 2023 was 0.87. Vivo Energy Mauritius's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.15. As of today, Vivo Energy Mauritius's Altman Z-Score is 2.41.


Competitive Comparison of Vivo Energy Mauritius's Financial Strength

For the Oil & Gas Refining & Marketing subindustry, Vivo Energy Mauritius'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.


Vivo Energy Mauritius's Financial Strength Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Vivo Energy Mauritius's Financial Strength distribution charts can be found below:

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


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Vivo Energy Mauritius 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:

Vivo Energy Mauritius's Interest Expense for the months ended in Dec. 2023 was MUR-6,889 Mil. Its Operating Income for the months ended in Dec. 2023 was MUR5,976 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was MUR48,813 Mil.

Vivo Energy Mauritius's Interest Coverage for the quarter that ended in Dec. 2023 is

Interest Coverage=-1*Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*5976.22/-6888.62
=0.87

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

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

Vivo Energy Mauritius'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
=(27600.099 + 48813.399) / 502276.189
=0.15

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.

Vivo Energy Mauritius has a Z-score of 2.41, indicating it is in Grey Zones. This implies that Vivo Energy Mauritius is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.41 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* 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.


Vivo Energy Mauritius  (XMAU:VIVOENERGY) 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.

Vivo Energy Mauritius has the Financial Strength Rank of 5.


Vivo Energy Mauritius Financial Strength Related Terms

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Vivo Energy Mauritius Business Description

Traded in Other Exchanges
N/A
Address
23 Lower Belgrave Street, London, GBR, SWIW 0NT
Vivo Energy Mauritius Ltd is engaged in the marketing and distribution of petroleum products. The group operates under three reportable segments: Retail, Commercial, and Lubricants. It generates maximum revenue from the Retail segment. The company offers lubricants and liquefied petroleum gas (LPG) products to the aviation, construction, manufacturing, marine, power, mining, and road transport industries.

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