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Azul Azul (XSGO:AZUL AZUL) Financial Strength : 3 (As of Mar. 2025)


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What is Azul Azul Financial Strength?

Azul Azul has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Azul Azul SA displays poor financial strength. Usually, this is caused by too much debt for the company.

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.

Azul Azul did not have earnings to cover the interest expense. Azul Azul's debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.55. As of today, Azul Azul's Altman Z-Score is 0.84.


Competitive Comparison of Azul Azul's Financial Strength

For the Entertainment subindustry, Azul Azul'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.


Azul Azul's Financial Strength Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Azul Azul's Financial Strength distribution charts can be found below:

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


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Azul Azul 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:

Azul Azul's Interest Expense for the months ended in Mar. 2025 was CLP-201 Mil. Its Operating Income for the months ended in Mar. 2025 was CLP-106 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was CLP12,019 Mil.

Azul Azul's Interest Coverage for the quarter that ended in Mar. 2025 is

Azul Azul did not have earnings to cover the interest expense.

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

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Azul Azul SA interest coverage is 1.9, which is low.

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

Azul Azul's Debt to Revenue Ratio for the quarter that ended in Mar. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1510.553 + 12019.185) / 24727.696
=0.55

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.

Azul Azul has a Z-score of 0.84, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.84 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.


Azul Azul  (XSGO:AZUL AZUL) 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.

Azul Azul has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Azul Azul Financial Strength Related Terms

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Azul Azul Business Description

Traded in Other Exchanges
N/A
Address
Avenida El Parron 0939, La Cisterna, Santiago, CHL
Azul Azul SA owns the Universidad de Chile soccer club. It organizes, produces, markets, and participates in professional activities of entertainment and recreation sporting. It also provides counseling services, support, equipment, and event management services. It has three segments; Bordero Collection, Advertising Revenue, and Other Revenue. The Bordero Collection segment is related to the income associated with the collections of the matches played by the Club in National Tournaments, International Tournaments, and Friendly Matches, and the Advertising segment which generates maximum revenue is related to income from stadium advertising, sponsorship, and merchandising.

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