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Compagnie Financiere Richemont Financial Strength

: 6 (As of Mar. 2022)
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Compagnie Financiere Richemont 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.

Compagnie Financiere Richemont's Interest Coverage for the quarter that ended in Mar. 2022 was 17.36. Compagnie Financiere Richemont's debt to revenue ratio for the quarter that ended in Mar. 2022 was 0.73. As of today, Compagnie Financiere Richemont's Altman Z-Score is 3.56.


Competitive Comparison

For the Luxury Goods subindustry, Compagnie Financiere Richemont'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.

   

Compagnie Financiere Richemont Financial Strength Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Compagnie Financiere Richemont's Financial Strength distribution charts can be found below:

* The bar in red indicates where Compagnie Financiere Richemont's Financial Strength falls into.



Compagnie Financiere Richemont 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:

Compagnie Financiere Richemont's Interest Expense for the months ended in Mar. 2022 was $-91 Mil. Its Operating Income for the months ended in Mar. 2022 was $1,587 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2022 was $10,012 Mil.

Compagnie Financiere Richemont'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*1587.0044052863/-91.409691629956
=17.36

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

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

Compagnie Financiere Richemont'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
=(6560.5726872247 + 10012.114537445) / 22629.955947137
=0.73

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.

Compagnie Financiere Richemont has a Z-score of 3.56, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.56 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.


Compagnie Financiere Richemont  (OTCPK:CFRHF) 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.

Compagnie Financiere Richemont has the Financial Strength Rank of 6.


Compagnie Financiere Richemont Financial Strength Related Terms

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


Compagnie Financiere Richemont Business Description

Compagnie Financiere Richemont logo
Address
50, Chemin de la Chenaie, CP 30, Bellevue, Geneva, CHE, 1293
Richemont is a luxury goods conglomerate with 20 brands. Jewellery and watch brands make up over 70% of sales, but the group is also active in accessories, writing instruments, clothing and online luxury retail. Richemont's Jewellery Maisons, including Cartier and Van Cleef & Arpels, account for 56% of revenue and over 95% of profits. Its other brands include Vacheron Constantin, Piaget, Jaeger-LeCoultre, IWC Schaffhausen, Lange & Soehne, Officine Panerai, and Montblanc. Online businesses include Yoox Net-a-Porter.

Compagnie Financiere Richemont Headlines

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