GURUFOCUS.COM » STOCK LIST » USA » NYSE » Barrick Gold Corp (NYSE:GOLD) » Definitions » Financial Strength
Switch to:

Barrick Gold (NYSE:GOLD) Financial Strength

: 6 (As of Dec. 2023)
View and export this data going back to 1987. Start your Free Trial

Barrick Gold has the Financial Strength Rank of 6.

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.

Barrick Gold's Interest Coverage for the quarter that ended in Dec. 2023 was 8.95. Barrick Gold's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.43. As of today, Barrick Gold's Altman Z-Score is 1.56.


Competitive Comparison

For the Gold subindustry, Barrick Gold'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.


Barrick Gold Financial Strength Distribution

For the Metals & Mining industry and Basic Materials sector, Barrick Gold's Financial Strength distribution charts can be found below:

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



Barrick Gold 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:

Barrick Gold's Interest Expense for the months ended in Dec. 2023 was $-78 Mil. Its Operating Income for the months ended in Dec. 2023 was $698 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $5,180 Mil.

Barrick Gold's Interest Coverage for the quarter that ended in Dec. 2023 is

Interest Coverage=-1*Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*698/-78
=8.95

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

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

Barrick Gold's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(43 + 5180) / 12236
=0.43

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.

Barrick Gold has a Z-score of 1.56, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.56 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.


Barrick Gold  (NYSE:GOLD) 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.

Barrick Gold has the Financial Strength Rank of 6.


Barrick Gold Financial Strength Related Terms

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


Barrick Gold (NYSE:GOLD) Business Description

Address
161 Bay Street, Brookfield Place, Suite 3700, P.O. Box 212, TD Canada Trust Tower, Toronto, ON, CAN, M5J 2S1
Based in Toronto, Barrick Gold is one of the world's largest gold miners. In 2022, the firm produced nearly 4.1 million attributable ounces of gold and about 440 million pounds of copper. At end 2022, Barrick had about two decades of gold reserves along with significant copper reserves. After buying Randgold in 2019 and combining its Nevada mines in a joint venture with competitor Newmont later that year, it operates mines in 19 countries in the Americas, Africa, the Middle East, and Asia. The company also has growing copper exposure. Its potential Reko Diq project in Pakistan, if developed, could double copper production by the end of the decade.