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Brunello Cucinelli SpA (CHIX:BCM) Financial Strength : 5 (As of Dec. 2024)


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What is Brunello Cucinelli SpA Financial Strength?

Brunello Cucinelli SpA has the Financial Strength Rank of 5.

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.

Brunello Cucinelli SpA's Interest Coverage for the quarter that ended in Dec. 2024 was 6.64. Brunello Cucinelli SpA's debt to revenue ratio for the quarter that ended in Dec. 2024 was 0.73. As of today, Brunello Cucinelli SpA's Altman Z-Score is 4.90.


Competitive Comparison of Brunello Cucinelli SpA's Financial Strength

For the Luxury Goods subindustry, Brunello Cucinelli SpA'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.


Brunello Cucinelli SpA's Financial Strength Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Brunello Cucinelli SpA's Financial Strength distribution charts can be found below:

* The bar in red indicates where Brunello Cucinelli SpA's Financial Strength falls into.


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Brunello Cucinelli SpA 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:

Brunello Cucinelli SpA's Interest Expense for the months ended in Dec. 2024 was €-16 Mil. Its Operating Income for the months ended in Dec. 2024 was €108 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was €728 Mil.

Brunello Cucinelli SpA's Interest Coverage for the quarter that ended in Dec. 2024 is

Interest Coverage=-1*Operating Income (Q: Dec. 2024 )/Interest Expense (Q: Dec. 2024 )
=-1*108.387/-16.328
=6.64

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

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

Brunello Cucinelli SpA's Debt to Revenue Ratio for the quarter that ended in Dec. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(230.81 + 727.907) / 1315.756
=0.73

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.

Brunello Cucinelli SpA has a Z-score of 4.90, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.9 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.


Brunello Cucinelli SpA  (CHIX:BCm) 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.

Brunello Cucinelli SpA has the Financial Strength Rank of 5.


Brunello Cucinelli SpA Financial Strength Related Terms

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Brunello Cucinelli SpA Business Description

Traded in Other Exchanges
Address
Viale Parco dell’Industria, 5, Frazione Solomeo, Corciano, Perugia, ITA, 06073
Brunello Cucinelli, an Italian luxury apparel brand, keeps its entire supply chain in Italy, focusing on quality and hand-crafted design. Known for its cashmere-focused, timeless apparel, the brand appeals to luxury consumers who value enduring style over trends. Ready-to-wear clothing accounts for 84% of revenue and accessories for 16%. With a global presence, 36% of revenue comes from Europe, 37% from the Americas, and the remainder from a growing share in Asia. Women's collections contribute 55% of revenue, men's 45%.

Brunello Cucinelli SpA Headlines