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Accelleron Industries AG (XSWX:ACLN) Financial Strength : 3 (As of Jun. 2023)


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What is Accelleron Industries AG Financial Strength?

Accelleron Industries AG 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:

Accelleron Industries AG 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 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.

Accelleron Industries AG's Interest Coverage for the quarter that ended in Jun. 2023 was 620.41. Accelleron Industries AG's debt to revenue ratio for the quarter that ended in Jun. 2023 was 0.46. As of today, Accelleron Industries AG's Altman Z-Score is 0.00.


Competitive Comparison of Accelleron Industries AG's Financial Strength

For the Aerospace & Defense subindustry, Accelleron Industries AG'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.


Accelleron Industries AG's Financial Strength Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Accelleron Industries AG's Financial Strength distribution charts can be found below:

* The bar in red indicates where Accelleron Industries AG's Financial Strength falls into.



Accelleron Industries AG 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:

Accelleron Industries AG's Interest Expense for the months ended in Jun. 2023 was CHF-0.1 Mil. Its Operating Income for the months ended in Jun. 2023 was CHF53.4 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2023 was CHF364.1 Mil.

Accelleron Industries AG's Interest Coverage for the quarter that ended in Jun. 2023 is

Interest Coverage=-1*Operating Income (Q: Jun. 2023 )/Interest Expense (Q: Jun. 2023 )
=-1*53.355/-0.086
=620.41

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

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

Accelleron Industries AG's Debt to Revenue Ratio for the quarter that ended in Jun. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(5.675 + 364.065) / 807.906
=0.46

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.

Accelleron Industries AG has a Z-score of 0.00, indicating it is in Distress Zones. This implies bankrupcy 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.


Accelleron Industries AG  (XSWX:ACLN) 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.

Accelleron Industries AG 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.


Accelleron Industries AG Financial Strength Related Terms

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Accelleron Industries AG (XSWX:ACLN) Business Description

Traded in Other Exchanges
Address
Baden, Aargau, Baden, CHE
Accelleron Industries AG develop, produce and service turbochargers and digital solutions that make engines powerful and efficient. The company's solutions and services include Marine, Power, Oil & Gas, Rail. Its advanced products are used in a wide range of sectors including marine, energy and rail. The Company operates the business in the global turbocharger market for heavy duty 500 kilowatts and higher applications in two operating segments which are High Speed: which produces and services turbochargers with power outputs ranging from 500 to 5,000 kilowatts. High Speed turbochargers are used mainly in marine, electric power generation, oil & gas onshore and off-highway sites.Medium & Low Speed: produces and services turbochargers with power outputs from 3,000 to 30,000 kilowatts.

Accelleron Industries AG (XSWX:ACLN) Headlines

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