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Asahi Group Holdings Financial Strength

: 5 (As of Mar. 2022)
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Asahi Group Holdings has the Financial Strength Rank of 5.

Warning Sign:

Asahi Group Holdings Ltd displays poor financial strength. Usually, this is caused by too much debt for the company.

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.

Asahi Group Holdings's Interest Coverage for the quarter that ended in Mar. 2022 was 2.57. Asahi Group Holdings's debt to revenue ratio for the quarter that ended in Mar. 2022 was 0.85. As of today, Asahi Group Holdings's Altman Z-Score is 1.25.


Competitive Comparison

For the Beverages - Brewers subindustry, Asahi Group Holdings'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.

   

Asahi Group Holdings Financial Strength Distribution

For the Beverages - Alcoholic industry and Consumer Defensive sector, Asahi Group Holdings's Financial Strength distribution charts can be found below:

* The bar in red indicates where Asahi Group Holdings's Financial Strength falls into.



Asahi Group Holdings 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:

Asahi Group Holdings's Interest Expense for the months ended in Mar. 2022 was $-30 Mil. Its Operating Income for the months ended in Mar. 2022 was $76 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2022 was $9,919 Mil.

Asahi Group Holdings's Interest Coverage for the quarter that ended in Mar. 2022 is

Interest Coverage=-1*Operating Income (Q: Mar. 2022 )/Interest Expense (Q: Mar. 2022 )
=-1*76.270857684517/-29.634652134386
=2.57

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

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

Asahi Group Holdings's Debt to Revenue Ratio for the quarter that ended in Mar. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(4275.722017855 + 9919.1751547934) / 16760.79927541
=0.85

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.

Asahi Group Holdings has a Z-score of 1.25, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.25 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.


Asahi Group Holdings  (OTCPK:ASBRF) 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.

Asahi Group Holdings has the Financial Strength Rank of 5.


Asahi Group Holdings Financial Strength Related Terms

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


Asahi Group Holdings Business Description

Asahi Group Holdings logo
Traded in Other Exchanges
Address
1-23-1, Azumabashi, Sumida-ku, Tokyo, JPN, 130-8602
Asahi is a leading brewer in Japan with a more than 35% market share by volume, led by its Asahi Super Dry beer brand. It also operates a wide range of acholic and soft beverage products as well as packaged foods, mainly in Japan. It has made inroads into Europe through acquisitions of SABMiller's brands including Peroni and Pilsner Urquell in Western and Central Europe in 2016 and 2017. Australia and East Asia, including China, are the other overseas markets where Asahi is growing. Overseas business represents about 40% of group sales and half of EBITDA after consolidation of Carlton United Breweries, or CUB.
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