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AKO.B (Embotelladora Andina) Financial Strength : 6 (As of Mar. 2025)


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What is Embotelladora Andina Financial Strength?

Embotelladora Andina has the Financial Strength Rank of 6.

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.

Embotelladora Andina's Interest Coverage for the quarter that ended in Mar. 2025 was 8.32. Embotelladora Andina's debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.31. As of today, Embotelladora Andina's Altman Z-Score is 3.02.


Competitive Comparison of Embotelladora Andina's Financial Strength

For the Beverages - Non-Alcoholic subindustry, Embotelladora Andina'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.


Embotelladora Andina's Financial Strength Distribution in the Beverages - Non-Alcoholic Industry

For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Embotelladora Andina's Financial Strength distribution charts can be found below:

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


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Embotelladora Andina 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:

Embotelladora Andina's Interest Expense for the months ended in Mar. 2025 was $-17 Mil. Its Operating Income for the months ended in Mar. 2025 was $140 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was $1,085 Mil.

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

Interest Coverage=-1*Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*140.221/-16.852
=8.32

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

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

Embotelladora Andina'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
=(87.214 + 1085.091) / 3810.588
=0.31

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.

Embotelladora Andina has a Z-score of 3.02, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.02 is strong.

* 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.


Embotelladora Andina  (NYSE:AKO.B) 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.

Embotelladora Andina has the Financial Strength Rank of 6.


Embotelladora Andina Financial Strength Related Terms

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Embotelladora Andina Business Description

Address
Miraflores 9153, 7th Floor, Renca, Santiago, CHL
Embotelladora Andina SA is a Coca-Cola bottler in Latin America whose principal activity is to produce, bottle, commercialize, and distribute the products under registered trademarks of The Coca-Cola Company (TCCC), as well as commercialize and distribute some brands of other companies such as Monster, AB InBev, Diageo and Capel, among others. The Company maintains operations and is licensed to produce, commercialize, and distribute such products in certain territories in Chile, Brazil, Argentina, and Paraguay. Its operating segments are: Operations in Chile, Operation in Brazil, Operation in Argentina, and Operation in Paraguay. The group generates the majority of its revenue from the Operations in Chile segment.