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Pampa Energia Financial Strength

: 4 (As of Jun. 2021)
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Pampa Energia has the Financial Strength Rank of 4.

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.

Pampa Energia's Interest Coverage for the quarter that ended in Jun. 2021 was 3.65. Pampa Energia's debt to revenue ratio for the quarter that ended in Jun. 2021 was 1.12. As of today, Pampa Energia's Altman Z-Score is 1.58.


Competitive Comparison

For the Utilities - Regulated Electric subindustry, Pampa Energia'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.

   

Pampa Energia Financial Strength Distribution

For the Utilities - Regulated industry and Utilities sector, Pampa Energia's Financial Strength distribution charts can be found below:

* The bar in red indicates where Pampa Energia's Financial Strength falls into.



Pampa Energia 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:

Pampa Energia's Interest Expense for the months ended in Jun. 2021 was $-40.7 Mil. Its Operating Income for the months ended in Jun. 2021 was $148.5 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2021 was $1,392.2 Mil.

Pampa Energia's Interest Coverage for the quarter that ended in Jun. 2021 is

Interest Coverage=-1*Operating Income (Q: Jun. 2021 )/Interest Expense (Q: Jun. 2021 )
=-1*148.52738894139/-40.694604432769
=3.65

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

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

Pampa Energia's Debt to Revenue Ratio for the quarter that ended in Jun. 2021 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2021 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(144.51598824503 + 1392.1882806232) / 1375.5304114157
=1.12

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.

Pampa Energia has a Z-score of 1.58, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.58 is in distress zone. This implies bankrupcy 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.


Pampa Energia  (NYSE:PAM) 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.

Pampa Energia has the Financial Strength Rank of 4.


Pampa Energia Financial Strength Related Terms

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


Pampa Energia Business Description

Pampa Energia logo
Industry
Utilities » Utilities - Regulated NAICS : 221122 SIC : 4911
Traded in Other Exchanges
Address
Maipu 1, Buenos Aires, ARG, C1084ABA
Pampa Energia SA and its subsidiaries are engaged in the Energy business. The operating business segments of the firm are are Electricity Generation, Electricity Distribution, Oil and Gas, Refining and Distribution, Petrochemicals, and Holding and Other Business. The company derives the maximum revenue from the Distribution of energy.

Pampa Energia Headlines

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