What is Volcan Compania MineraA Financial Strength?
Volcan Compania MineraA has the Financial Strength Rank of 1. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Volcan Compania Minera SAA displays poor financial strength. Usually, this is caused by too much debt for the company.
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.
Volcan Compania MineraA's Interest Coverage for the quarter that ended in Dec. 2023 was 0.44.
Volcan Compania MineraA's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.92.
As of today, Volcan Compania MineraA's Altman Z-Score is 0.26.
Competitive Comparison of Volcan Compania MineraA's Financial Strength
For the Other Industrial Metals & Mining subindustry, Volcan Compania MineraA'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.
Volcan Compania MineraA's Financial Strength Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Volcan Compania MineraA's Financial Strength distribution charts can be found below:
* The bar in red indicates where Volcan Compania MineraA's Financial Strength falls into.
Volcan Compania MineraA 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:
Volcan Compania MineraA's Interest Expense for the
months ended in Dec. 2023 was S/.-65 Mil. Its Operating Income for the
months ended in Dec. 2023 was S/.28 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was S/.2,511 Mil.
Volcan Compania MineraA's Interest Coverage for the quarter that ended in Dec. 2023 is
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Volcan Compania Minera SAA interest coverage is 1, which is low.
2. Debt to revenue ratio. The lower, the better.
Volcan Compania MineraA's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is
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.
Volcan Compania MineraA has a Z-score of 0.26, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 0.26 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.
Volcan Compania MineraA (LIM:VOLCABC1) Business Description
Traded in Other Exchanges
Address
Avenida Manuel Olguin 373, Santiago de Surco, Lima, PER
Volcan Compania Minera SAA is a Peruvian mining company. All of its operations are located in the central mountains of the Peruvian Andes, which include operating units such as Yauli, Chungar, Alpamarca, and Cerro de Pasco. These four operating units include a total of 10 mines, seven concentrator plants, and an oxide leaching plant. Zinc constitutes the largest contribution to consolidated revenue, and with silver, makes up the vast majority of sales. In addition to the zinc and silver business, the company also mines lead, copper, and gold.
Volcan Compania MineraA (LIM:VOLCABC1) Headlines
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