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Compania Industrial El Volcan (XSGO:VOLCAN) Financial Strength : 7 (As of Dec. 2023)


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What is Compania Industrial El Volcan Financial Strength?

Compania Industrial El Volcan has the Financial Strength Rank of 7.

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.

Compania Industrial El Volcan's Interest Coverage for the quarter that ended in Dec. 2023 was 1.61. Compania Industrial El Volcan's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.56. As of today, Compania Industrial El Volcan's Altman Z-Score is 2.60.


Competitive Comparison of Compania Industrial El Volcan's Financial Strength

For the Building Materials subindustry, Compania Industrial El Volcan'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.


Compania Industrial El Volcan's Financial Strength Distribution in the Building Materials Industry

For the Building Materials industry and Basic Materials sector, Compania Industrial El Volcan's Financial Strength distribution charts can be found below:

* The bar in red indicates where Compania Industrial El Volcan's Financial Strength falls into.



Compania Industrial El Volcan 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:

Compania Industrial El Volcan's Interest Expense for the months ended in Dec. 2023 was CLP-393 Mil. Its Operating Income for the months ended in Dec. 2023 was CLP632 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was CLP73,970 Mil.

Compania Industrial El Volcan'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*631.768/-393.034
=1.61

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

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

Compania Industrial El Volcan'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
=(931.525 + 73969.734) / 134885.02
=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.

Compania Industrial El Volcan has a Z-score of 2.60, indicating it is in Grey Zones. This implies that Compania Industrial El Volcan 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 2.6 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.


Compania Industrial El Volcan  (XSGO:VOLCAN) 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.

Compania Industrial El Volcan has the Financial Strength Rank of 7.


Compania Industrial El Volcan Financial Strength Related Terms

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Compania Industrial El Volcan (XSGO:VOLCAN) Business Description

Traded in Other Exchanges
N/A
Address
Agustinas 1357, Piso 22, Santiago, CHL
Compania Industrial El Volcan SA is a producer and marketer of materials for construction in Chile, Peru, Colombia and Brazil. It supplies building materials and provides constructive solutions. Through its subsidiaries it produces plasterboard plates, mineral wool, glass wool, and many others. It also distributes mines gypsum and lime. Its products include Perimeter walls, Finishing the facade, Plates for wet areas, High hardness / impact plates, Plates with built-in color, Thermal insulation, Insulation of boilers and ponds, Insulation for pipes, Insulation for industrial sheds.

Compania Industrial El Volcan (XSGO:VOLCAN) Headlines

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