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Deutsche Postbank AG (XSWX:DPB) Financial Strength : 0 (As of Dec. 2016)


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What is Deutsche Postbank AG Financial Strength?

Deutsche Postbank AG has the Financial Strength Rank of 0.

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.

GuruFocus does not calculate Deutsche Postbank AG's interest coverage with the available data. Deutsche Postbank AG's debt to revenue ratio for the quarter that ended in Dec. 2016 was 4.00. Altman Z-Score does not apply to banks and insurance companies.


Deutsche Postbank 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:

Deutsche Postbank AG's Interest Expense for the months ended in Dec. 2016 was CHF-1,233 Mil. Its Operating Income for the months ended in Dec. 2016 was CHF25 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2016 was CHF13,736 Mil.

Deutsche Postbank AG's Interest Coverage for the quarter that ended in Dec. 2016 is

Interest Coverage=-1*Operating Income (Q: Dec. 2016 )/Interest Expense (Q: Dec. 2016 )
=-1*24.732/-1233.388
=0.02

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

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

Deutsche Postbank AG's Debt to Revenue Ratio for the quarter that ended in Dec. 2016 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2016 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 13736.092) / 3430.259
=4.00

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.

Altman Z-Score does not apply to banks and insurance companies.

* 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.


Deutsche Postbank AG  (XSWX:DPB) 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.

Deutsche Postbank AG has the Financial Strength Rank of 0.


Deutsche Postbank AG Financial Strength Related Terms

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Deutsche Postbank AG (XSWX:DPB) Business Description

Traded in Other Exchanges
N/A
Address
Deutsche Postbank AG is a financial service provider. It focuses on business with private customers and with small and medium-sized companies. It offers simple, low-cost products for day-to-day needs to its private customers. Its products and services range from payment transactions and deposit and lending business to bonds, investment funds, insurance policies and home savings contracts. The company's customers include self-employed professionals, freelancers, business proprietors, associations and condominium owners' associations.