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Resolute Forest Products Financial Strength

: 7 (As of Jun. 2022)
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Resolute Forest Products 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.

Resolute Forest Products's Interest Coverage for the quarter that ended in Jun. 2022 was 37.50. Resolute Forest Products's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.09. As of today, Resolute Forest Products's Altman Z-Score is 1.88.


Competitive Comparison

For the Paper & Paper Products subindustry, Resolute Forest Products'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.

   

Resolute Forest Products Financial Strength Distribution

For the Forest Products industry and Basic Materials sector, Resolute Forest Products's Financial Strength distribution charts can be found below:

* The bar in red indicates where Resolute Forest Products's Financial Strength falls into.



Resolute Forest Products 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:

Resolute Forest Products's Interest Expense for the months ended in Jun. 2022 was $-6 Mil. Its Operating Income for the months ended in Jun. 2022 was $225 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $352 Mil.

Resolute Forest Products's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*225/-6
=37.50

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

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

Resolute Forest Products'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
=(10 + 352) / 4232
=0.09

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.

Resolute Forest Products has a Z-score of 1.88, indicating it is in Grey Zones. This implies that Resolute Forest Products 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 1.88 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.


Resolute Forest Products  (NYSE:RFP) 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.

Resolute Forest Products has the Financial Strength Rank of 7.


Resolute Forest Products Financial Strength Related Terms

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


Resolute Forest Products Business Description

Resolute Forest Products logo
Traded in Other Exchanges
Address
111 Robert-Bourassa Boulevard, Suite 5000, Montreal, QC, CAN, H3C 2M1
Resolute Forest Products Inc is engaged in the forest products industry with a range of products, including market pulp, tissue, wood products, newsprint, and specialty papers. The product range includes market pulp, tissue, wood products, newsprint and specialty papers which are marketed to nearly 50 countries. The company owns or operates pulp, paper, tissue and wood products facilities in the United States and Canada.
Executives
Rousseau Michael S director C/O ABITIBIBOWATER INC. 1155 METCALFE STREET, SUITE 800 MONTREAL, QUEBEC Z4 H3B 5H2
Dolan Jennifer C director 229 WEST 43RD STREET NEW YORK NY 10036
Rheaume Alain director C/O ABITIBIBOWATER INC. 1155 METCALFE STREET, SUITE 800 MONTREAL, QUEBEC Z4 H3B 5H2
Blanchet Suzanne director 111 ROBERT-BOURASSA BOULEVARD SUITE 5000 MONTREAL A8 H3C 2M1
Viboux Daniel officer: Chief Accounting Officer 111 ROBERT-BOURASSA SUITE 5000 MONTREAL A8 H3C 2M1
Leclaire Stephanie officer: chief Legal Officer 111 ROBERT-BOURASSA SUITE 5000 MONTREAL A8 H3C 2M1
Davies Duncan director 111 ROBERT-BOURASSA SUITE 5000 MONTREAL A8 H3C 2M1
Benson Randall C director RESOLUTE FOREST PRODUCTS INC. 111 DUKE STREET, SUITE 5000 MONTREAL A8 H3C 2M1
Martin Bradley director C/O ODYSSEY RE HOLDINGS CORP. 300 FIRST STAMFORD PLACE STAMFORD CT 06902
Girard Sylvain A. officer: Chief Financial Officer 111 ROBERT-BOURASSA SUITE 5000 MONTREAL A8 H3C 2M1
Simon Hugues officer: President, Wood products 111 ROBERT-BOURASSA SUITE 5000 MONTREAL A8 H3C 2M1
Kilgour Lori officer: SVP, Chief Information Officer 111 ROBERT-BOURASSA SUITE 5000 MONTREAL A8 H3C2M1
Theriault Luc officer: SVP, Wood Products 111 ROBERT-BOURASSA SUITE 5000 MONTREAL A8 H3C2M1
Lalonde Remi G. officer: SVP & Chief Financial Officer 111 ROBERT-BOURASSA BOULEVARD SUITE 5000 MONTREAL A8 H3C 2M1
Ouellet Daniel officer: SVP Human Resources 111 ROBERT-BOURASSA BOULEVARD SUITE 5000 MONTREAL A8 H3C 2M1

Resolute Forest Products Headlines

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