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Gold Fields (JSE:GFI) Financial Strength : 7 (As of Dec. 2023)


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What is Gold Fields Financial Strength?

Gold Fields has the Financial Strength Rank of 7.

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.

Gold Fields's Interest Coverage for the quarter that ended in Dec. 2023 was 22.70. Gold Fields's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.37. As of today, Gold Fields's Altman Z-Score is 4.23.


Competitive Comparison of Gold Fields's Financial Strength

For the Gold subindustry, Gold Fields'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.


Gold Fields's Financial Strength Distribution in the Metals & Mining Industry

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

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



Gold Fields 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:

Gold Fields's Interest Expense for the months ended in Dec. 2023 was R-566 Mil. Its Operating Income for the months ended in Dec. 2023 was R12,858 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was R18,877 Mil.

Gold Fields'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*12858.495/-566.437
=22.70

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

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

Gold Fields'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
=(12293.921 + 18876.89) / 83266.256
=0.37

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.

Gold Fields has a Z-score of 4.23, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.23 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.


Gold Fields  (JSE:GFI) 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.

Gold Fields has the Financial Strength Rank of 7.


Gold Fields Financial Strength Related Terms

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


Gold Fields (JSE:GFI) Business Description

Address
150 Helen Road, Sandown, Sandton, Johannesburg, GT, ZAF, 2196
Gold Fields Ltd is a producer of gold and is a holder of gold reserves and resources in South Africa, Ghana, Australia and Peru. In Peru, the company also produces copper. The company is primarily involved in underground and surface gold and surface copper mining and silver and related activities, including exploration, extraction, processing and smelting. It conducts underground and surface mining operations at St. Ives, underground-only operations at Agnew, Granny Smith and South Deep and surface-only open pit mining at Damang, Tarkwa and Cerro Corona. The company's revenues are derived from the sale of gold that it produces.