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FinecoBank SpA Financial Strength

: 3 (As of Jun. 2022)
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FinecoBank SpA has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

FinecoBank SpA 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.

GuruFocus does not calculate FinecoBank SpA's interest coverage with the available data. Altman Z-Score does not apply to banks and insurance companies.


FinecoBank 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:

FinecoBank SpA's Interest Expense for the months ended in Jun. 2022 was €0.0 Mil. Its Operating Income for the months ended in Jun. 2022 was €0.0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was €562.9 Mil.

FinecoBank SpA's Interest Coverage for the quarter that ended in Jun. 2022 is

GuruFocus does not calculate FinecoBank SpA's interest coverage with the available data.

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

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. FinecoBank SpA has enough cash to cover all of its debt. Its financial situation is stable.

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

FinecoBank SpA's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 562.916) / 0
=N/A

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.

Altman Z-Score does not apply to banks and insurance companies.

* 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.


FinecoBank SpA  (MIL:FBK) 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.

FinecoBank SpA has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


FinecoBank SpA Financial Strength Related Terms

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FinecoBank SpA Business Description

FinecoBank SpA logo
Traded in Other Exchanges
Address
Piazza Durante, 11, Milan, ITA, 20131
FinecoBank SpA business model integrates direct banking and financial advice, with operations split into three segments, including banking, brokerage, and investing. Unlike most banks, FinecoBank's net revenue is split nearly evenly between net interest and net fee and commission income, given its strategic emphasis on private banking. The majority of its balance sheet assets are exposed to central Italy, with some notable exposure to the rest of Italy and other European countries. The bank has some sovereign debt exposure, mostly to in Italian and Spanish debt securities.
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