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Grupo LalaB de CV (Grupo LalaB de CV) Financial Strength : 4 (As of Mar. 2022)


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What is Grupo LalaB de CV Financial Strength?

Grupo LalaB de CV has the Financial Strength Rank of 4.

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.

Grupo LalaB de CV's Interest Coverage for the quarter that ended in Mar. 2022 was 1.67. Grupo LalaB de CV's debt to revenue ratio for the quarter that ended in Mar. 2022 was 0.36. As of today, Grupo LalaB de CV's Altman Z-Score is 0.00.


Competitive Comparison of Grupo LalaB de CV's Financial Strength

For the Packaged Foods subindustry, Grupo LalaB de CV'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.


Grupo LalaB de CV's Financial Strength Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Grupo LalaB de CV's Financial Strength distribution charts can be found below:

* The bar in red indicates where Grupo LalaB de CV's Financial Strength falls into.



Grupo LalaB de CV 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:

Grupo LalaB de CV's Interest Expense for the months ended in Mar. 2022 was $-33 Mil. Its Operating Income for the months ended in Mar. 2022 was $55 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2022 was $1,402 Mil.

Grupo LalaB de CV'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*54.539/-32.657
=1.67

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

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

Grupo LalaB de CV'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
=(171.121 + 1401.789) / 4406.724
=0.36

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.

Grupo LalaB de CV has a Z-score of 0.00, indicating it is in Distress Zones. This implies bankrupcy 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.


Grupo LalaB de CV  (OTCPK:GRPBF) 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.

Grupo LalaB de CV has the Financial Strength Rank of 4.


Grupo LalaB de CV Financial Strength Related Terms

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Grupo LalaB de CV (Grupo LalaB de CV) Business Description

Traded in Other Exchanges
N/A
Address
Av Lazaro Cardenas 185, Gomez Palacio, Mexico, DF, MEX, 35070
Grupo Lala SAB de CV is a Mexican company, focused on healthy and nutritious food, has over 65 years of experience in producing, revitalizing and marketing dairy products with the best quality. The company offers milk, cheese, cream, yogurts, butter, margarine and dessert products under Lala brand. Its product is made with fresh milk and natural fruit that offers calcium, vitamins, and proteins, which are part of the energy for the functioning of the body, in addition, its products act as the beneficiary for good nutrition.