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Monsanto Co (XSWX:MOO) Financial Strength : 0 (As of Feb. 2018)


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What is Monsanto Co Financial Strength?

Monsanto Co 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.

Monsanto Co's Interest Coverage for the quarter that ended in Feb. 2018 was 18.29. Monsanto Co's debt to revenue ratio for the quarter that ended in Feb. 2018 was 0.39. As of today, Monsanto Co's Altman Z-Score is 0.00.


Competitive Comparison of Monsanto Co's Financial Strength

For the Agricultural Inputs subindustry, Monsanto Co'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.


Monsanto Co's Financial Strength Distribution in the Agriculture Industry

For the Agriculture industry and Basic Materials sector, Monsanto Co's Financial Strength distribution charts can be found below:

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



Monsanto Co 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:

Monsanto Co's Interest Expense for the months ended in Feb. 2018 was CHF-98 Mil. Its Operating Income for the months ended in Feb. 2018 was CHF1,796 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Feb. 2018 was CHF6,207 Mil.

Monsanto Co's Interest Coverage for the quarter that ended in Feb. 2018 is

Interest Coverage=-1*Operating Income (Q: Feb. 2018 )/Interest Expense (Q: Feb. 2018 )
=-1*1796.16/-98.228
=18.29

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

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

Monsanto Co's Debt to Revenue Ratio for the quarter that ended in Feb. 2018 is

Debt to Revenue Ratio=Total Debt (Q: Feb. 2018 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1133.826 + 6207.043) / 18781.1
=0.39

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.

Monsanto Co 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.


Monsanto Co  (XSWX:MOO) 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.

Monsanto Co has the Financial Strength Rank of 0.


Monsanto Co Financial Strength Related Terms

Thank you for viewing the detailed overview of Monsanto Co's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Monsanto Co (XSWX:MOO) Business Description

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Originally a chemical company, Monsanto has morphed into an agricultural giant, focusing on seeds and crop-protection products. In a major breakthrough, Monsanto introduced the first genetically modified crop seeds in 1996 and has remained the industry leader through new product development and licensing agreements. Monsanto continues to focus on bringing new biotechnology traits to market to improve farmer yields and productivity.