GURUFOCUS.COM » STOCK LIST » Africa » Botswana » BOT » First National Bank Botswana Ltd (BOT:FNBBBT) » Definitions » Financial Strength
Switch to:

First National Bank Botswana (BOT:FNBBBT) Financial Strength

: 6 (As of . 20)
View and export this data going back to 1990. Start your Free Trial

First National Bank Botswana has the Financial Strength Rank of 6.

Good Sign:

First National Bank Botswana Ltd shows strong financial strength.

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.

First National Bank Botswana did not have earnings to cover the interest expense. Altman Z-Score does not apply to banks and insurance companies.


First National Bank Botswana 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:

First National Bank Botswana's Interest Expense for the months ended in . 20 was BWP0.00 Mil. Its Operating Income for the months ended in . 20 was BWP0.00 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in . 20 was BWP0.00 Mil.

First National Bank Botswana's Interest Coverage for the quarter that ended in . 20 is

First National Bank Botswana had no debt.

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

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

First National Bank Botswana's Debt to Revenue Ratio for the quarter that ended in . 20 is

Debt to Revenue Ratio=Total Debt (Q: . 20 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=( + ) / 0
=N/A

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.


First National Bank Botswana  (BOT:FNBBBT) 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.

First National Bank Botswana has the Financial Strength Rank of 6.


First National Bank Botswana Financial Strength Related Terms

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


First National Bank Botswana (BOT:FNBBBT) Business Description

First National Bank Botswana logo
Comparable Companies
Traded in Other Exchanges
N/A
Address
Finance House, Plot 8843, Khama Crescent, Gaborone, BWA
First National Bank Botswana Ltd is a commercial bank which offers banking and related services through its branches, agencies and automated teller machines in Botswana.The company offers cheque, transactional savings, and student accounts; overdrafts; loans, and corporate finance services, credit and debit cards. It also provides foreign exchange solutions; Islamic finance and financial planning services; forex and trade services, such as payment, and import and export solutions; and accounting, point of sale, and custody services. In addition, the company offers agricultural solutions, farming enterprise finance services, payment, funding, and cash management services to the public sector; and treasury and trade services. Further, it provides corporate and investment banking services.
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
premium membership