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Nomad Foods Financial Strength

: 5 (As of Mar. 2022)
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Nomad Foods has the Financial Strength Rank of 5.

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.

Nomad Foods's Interest Coverage for the quarter that ended in Mar. 2022 was 6.88. Nomad Foods's debt to revenue ratio for the quarter that ended in Mar. 2022 was 0.76. As of today, Nomad Foods's Altman Z-Score is 1.15.


Competitive Comparison

For the Packaged Foods subindustry, Nomad Foods'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.

   

Nomad Foods Financial Strength Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, Nomad Foods's Financial Strength distribution charts can be found below:

* The bar in red indicates where Nomad Foods's Financial Strength falls into.



Nomad Foods 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:

Nomad Foods's Interest Expense for the months ended in Mar. 2022 was $-17 Mil. Its Operating Income for the months ended in Mar. 2022 was $117 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2022 was $2,437 Mil.

Nomad Foods's Interest Coverage for the quarter that ended in Mar. 2022 is

Interest Coverage=-1*Operating Income (Q: Mar. 2022 )/Interest Expense (Q: Mar. 2022 )
=-1*117.40088105727/-17.070484581498
=6.88

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

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

Nomad Foods's Debt to Revenue Ratio for the quarter that ended in Mar. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(32.378854625551 + 2436.7841409692) / 3228.6343612335
=0.76

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.

Nomad Foods has a Z-score of 1.15, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.15 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.


Nomad Foods  (NYSE:NOMD) 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.

Nomad Foods has the Financial Strength Rank of 5.


Nomad Foods Financial Strength Related Terms

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


Nomad Foods Business Description

Nomad Foods logo
Traded in Other Exchanges
Address
No. 1 New Square, Bedfont Lakes Business Park, Feltham, Middlesex, GBR, TW14 8HA
Nomad Foods Ltd is a packaged foods company that is involved in the business of manufacturing and distribution of branded frozen foods in Western Europe. The company manufactures and markets frozen food products such as fish, vegetables, poultry, and ready meals. It sells its products primarily through large grocery retailers under the brand Birds Eye in the United Kingdom and Ireland, Findus in Italy, France, Spain, and Scandinavia, and Iglo in Germany and other continental markets. The company operates through a single segment being Frozen. The majority of the revenue is generated from the United Kingdom.

Nomad Foods Headlines

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