What is Reynolds American Financial Strength?
Reynolds American has the Financial Strength Rank of 0.
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.
Reynolds American's Interest Coverage for the quarter that ended in Mar. 2017 was 8.90.
Reynolds American's debt to revenue ratio for the quarter that ended in Mar. 2017 was 1.11.
As of today, Reynolds American's Altman Z-Score is 0.00.
Competitive Comparison of Reynolds American's Financial Strength
For the Tobacco subindustry, Reynolds American'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.
Reynolds American's Financial Strength Distribution in the Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Reynolds American's Financial Strength distribution charts can be found below:
* The bar in red indicates where Reynolds American's Financial Strength falls into.
Reynolds American 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:
Reynolds American's Interest Expense for the
months ended in Mar. 2017 was $-149 Mil. Its Operating Income for the
months ended in Mar. 2017 was $1,326 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2017 was $12,651 Mil.
Reynolds American's Interest Coverage for the quarter that ended in Mar. 2017 is
The higher the ratio, the stronger the company's financial strength is.
2. Debt to revenue ratio. The lower, the better.
Reynolds American's Debt to Revenue Ratio for the quarter that ended in Mar. 2017 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.
Reynolds American has a Z-score of 0.00, indicating it is in Distress Zones. 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.
Reynolds American (Reynolds American) Business Description
Traded in Other Exchanges
N/A
Address
Reynolds American controls roughly one third of the U.S. cigarette market and is the second-largest domestic cigarette manufacturer behind Altria. Its brands include Camel, Pall Mall, and Newport. Reynolds also owns the Grizzly and Kodiak smokeless tobacco brands. Another subsidiary, Santa Fe Natural Tobacco, manufactures superpremium Natural American Spirit cigarettes. In 2013, Reynolds entered the electronic cigarette market with its Vuse brand, which captured a significant share of this small but growing market.
Executives
| John J Zillmer |
director |
ARAMARK CORP, 1101 MARKET ST, PHILADELPHIA PA 19107 |
| Debra Ann Crew |
officer: President and CEO |
STANLEY BLACK & DECKER, INC., 1000 STANLEY DRIVE, NEW BRITAIN CT 06053 |
| Ronald S Rolfe |
director |
825 8TH AVENUE, 38TH FLOOR, NEW YORK NY 10019 |
| Nowell Lionel L Iii |
director |
401 NORTH MAIN STREET, WINSTON-SALEM NC 27101 |
| Holly K Koeppel |
director |
401 NORTH MAIN STREET, WINSTON-SALEM NC 27101 |
| Susan M. Cameron |
director |
C/O TUPPERWARE BRANDS CORP, PO BOX 2353, ORLANDO FL 32802-2353 |
| Murray S Kessler |
director |
714 GREEN VALLEY ROAD, GREENSBORO NC 27408 |
| Nana Mensah |
director |
1301 AVENUE OF THE AMERICAS, NEW YORK NY 10019 |
| Thomas C Wajnert |
director |
401 NORTH MAIN STREET, WINSTON SALEM NC 27102 |
| Richard E Thornburgh |
director |
401 N. MAIN STREET, WINSTON-SALEM NC 27101 |
| Nicholas V Scheele |
director |
FORD MOTOR COMPANY, ONE AMERICAN ROAD, DEARBORN MI 48126 |
| Betsy S Atkins |
director |
|
| Joseph P Viviano |
director |
4351 GULF SHORE BLVD. N, 17N LERIVAGE, NAPLES FL 34103 |
| Monteiro De Castro Antonio |
director |
BRITISH AMERICAN TOBACCO - GLOBE HOUSE, 4 TEMPLE PLACE, LONDON X0 WC2R2PG |
| Chain John T Jr |
director |
401 N. MAIN ST., C/O RJ REYNOLDS TOBACCO HOLDINGS, WINSTON SALEM NC 27102 |
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