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Aroundtown (FRA:AT1) Financial Strength : 4 (As of Mar. 2025)


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What is Aroundtown Financial Strength?

Aroundtown has the Financial Strength Rank of 4.

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.

Aroundtown's Interest Coverage for the quarter that ended in Mar. 2025 was 4.27. Aroundtown's debt to revenue ratio for the quarter that ended in Mar. 2025 was 11.82. As of today, Aroundtown's Altman Z-Score is 0.57.


Competitive Comparison of Aroundtown's Financial Strength

For the Real Estate Services subindustry, Aroundtown'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.


Aroundtown's Financial Strength Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Aroundtown's Financial Strength distribution charts can be found below:

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


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Aroundtown 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:

Aroundtown's Interest Expense for the months ended in Mar. 2025 was €-55 Mil. Its Operating Income for the months ended in Mar. 2025 was €233 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was €12,526 Mil.

Aroundtown'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*233.4/-54.7
=4.27

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

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

Aroundtown'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
=(1421.4 + 12525.8) / 1180
=11.82

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.

Aroundtown has a Z-score of 0.57, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.57 is in distress zone. This implies bankruptcy 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.


Aroundtown  (FRA:AT1) 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.

Aroundtown has the Financial Strength Rank of 4.


Aroundtown Financial Strength Related Terms

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


Aroundtown Business Description

Address
37, Boulevard Joseph II, Luxembourg, LUX, L-1840
Aroundtown SA is a Luxembourg-based specialist real estate investment group focusing on value-add income-generating properties in the German markets. The group covers commercial and residential real estate assets that benefit from fundamentals and growth prospects. The company operates in Germany, the Netherlands, the United Kingdom, Belgium, and other countries, out of which the majority of the revenue is generated from the German markets.

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