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TotalEnergies SE Financial Strength

: 6 (As of Jun. 2022)
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TotalEnergies SE has the Financial Strength Rank of 6.

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.

TotalEnergies SE's Interest Coverage for the quarter that ended in Jun. 2022 was 24.02. TotalEnergies SE's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.22. As of today, TotalEnergies SE's Altman Z-Score is 1.53.


Competitive Comparison

For the Oil & Gas Integrated subindustry, TotalEnergies SE'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.

   

TotalEnergies SE Financial Strength Distribution

For the Oil & Gas industry and Energy sector, TotalEnergies SE's Financial Strength distribution charts can be found below:

* The bar in red indicates where TotalEnergies SE's Financial Strength falls into.



TotalEnergies SE 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:

TotalEnergies SE's Interest Expense for the months ended in Jun. 2022 was $-572 Mil. Its Operating Income for the months ended in Jun. 2022 was $13,742 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $46,868 Mil.

TotalEnergies SE'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*13742/-572
=24.02

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

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

TotalEnergies SE'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
=(16003 + 46868) / 281780
=0.22

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.

TotalEnergies SE has a Z-score of 1.53, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.53 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.


TotalEnergies SE  (NYSE:TTE) 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.

TotalEnergies SE has the Financial Strength Rank of 6.


TotalEnergies SE Financial Strength Related Terms

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


TotalEnergies SE Business Description

TotalEnergies SE logo
Address
2 Place Jean Millier, Tour Coupole, Paris la Defense cedex, Courbevoie, FRA, 92400
TotalEnergies SE is an integrated oil and gas company that explores for, produces, and refines oil around the world. In 2020, it produced 1.5 million barrels of liquids and 7.2 billion cubic feet of natural gas per day. At year-end 2020, reserves stood at 12.3 billion barrels of oil equivalent, 43% of which are liquids. The company operates refineries with a capacity of nearly 2.0 million barrels a day, primarily in Europe, distributes refined products in 65 countries, and manufactures commodity and specialty chemicals. It also holds a 19% interest in Russian oil company Novatek.

TotalEnergies SE Headlines

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