GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » DSV AS (OCSE:DSV) » Definitions » Financial Strength

DSV AS (OCSE:DSV) Financial Strength

: 6 (As of Dec. 2023)
View and export this data going back to 1993. Start your Free Trial

DSV AS 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.

DSV AS's Interest Coverage for the quarter that ended in Dec. 2023 was 86.96. DSV AS's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.27. As of today, DSV AS's Altman Z-Score is 3.92.


Competitive Comparison

For the Integrated Freight & Logistics subindustry, DSV AS'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.


DSV AS Financial Strength Distribution

For the Transportation industry and Industrials sector, DSV AS's Financial Strength distribution charts can be found below:

* The bar in red indicates where DSV AS's Financial Strength falls into.



DSV AS 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:

DSV AS's Interest Expense for the months ended in Dec. 2023 was kr-45 Mil. Its Operating Income for the months ended in Dec. 2023 was kr3,913 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was kr34,143 Mil.

DSV AS's Interest Coverage for the quarter that ended in Dec. 2023 is

Interest Coverage=-1*Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*3913/-45
=86.96

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

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

DSV AS's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(5947 + 34143) / 146112
=0.27

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.

DSV AS has a Z-score of 3.92, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.92 is strong.

* 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.


DSV AS  (OCSE:DSV) 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.

DSV AS has the Financial Strength Rank of 6.


DSV AS Financial Strength Related Terms

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


DSV AS (OCSE:DSV) Business Description

Address
Hovedgaden 630, Hedehusene, DNK, 2640
DSV is a Danish-listed transport and logistics company, offering transport services worldwide by road, air, sea, and train, with the bulk of its activities coming from its European trucking network and airfreight and sea freight forwarding businesses. Since its founding in 1976, the company has grown rapidly, mainly via acquisitions. The company has been active in the mergers and acquisitions segment, most recently acquiring peer GIL in 2021. This acquisition further diversifies its revenue base away from European road freight and adds scale in key regions such as the Middle East. It also moves DSV into third spot among the largest 3PL firms globally.

DSV AS (OCSE:DSV) Headlines

No Headlines