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Buzzi Unicem SpA Financial Strength

: 7 (As of Dec. 2021)
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Buzzi Unicem SpA 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.

Buzzi Unicem SpA's Interest Coverage for the quarter that ended in Dec. 2021 was 14.13. Buzzi Unicem SpA's debt to revenue ratio for the quarter that ended in Dec. 2021 was 0.33. As of today, Buzzi Unicem SpA's Altman Z-Score is 2.66.


Competitive Comparison

For the Building Materials subindustry, Buzzi Unicem 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.

   

Buzzi Unicem SpA Financial Strength Distribution

For the Building Materials industry and Basic Materials sector, Buzzi Unicem SpA's Financial Strength distribution charts can be found below:

* The bar in red indicates where Buzzi Unicem SpA's Financial Strength falls into.



Buzzi Unicem 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:

Buzzi Unicem SpA's Interest Expense for the months ended in Dec. 2021 was €-22 Mil. Its Operating Income for the months ended in Dec. 2021 was €311 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2021 was €1,044 Mil.

Buzzi Unicem SpA's Interest Coverage for the quarter that ended in Dec. 2021 is

Interest Coverage=-1*Operating Income (Q: Dec. 2021 )/Interest Expense (Q: Dec. 2021 )
=-1*310.504/-21.972
=14.13

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

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

Buzzi Unicem SpA's Debt to Revenue Ratio for the quarter that ended in Dec. 2021 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2021 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(171.561 + 1043.766) / 3673.664
=0.33

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.

Buzzi Unicem SpA has a Z-score of 2.66, indicating it is in Grey Zones. This implies that Buzzi Unicem SpA is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.66 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* 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.


Buzzi Unicem SpA  (MIL:BZU) 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.

Buzzi Unicem SpA has the Financial Strength Rank of 7.


Buzzi Unicem SpA Financial Strength Related Terms

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


Buzzi Unicem SpA Business Description

Buzzi Unicem SpA logo
Address
Via Luigi Buzzi, 6, Casale Monferrato, ITA, 15033
Buzzi Unicem SpA manufactures and sells cement, ready-mix concrete, and aggregates. The company operates in two segments by product: cement and concrete/aggregates. The cement segment generates the majority of revenue, sells cement and cement-related products to the construction and building industries. The concrete and aggregates segment sells concrete and aggregates from hundreds of firm-owned concrete batch plants and aggregate quarries. The vast majority of Buzzi Unicem's revenue comes from Europe and North America.

Buzzi Unicem SpA Headlines

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