Petroleo Brasileiro Petrobras (NYSE:PBR) Financial Strength

: 6 (As of Mar. 2023)

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Petroleo Brasileiro Petrobras 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.

Petroleo Brasileiro Petrobras's Interest Coverage for the quarter that ended in Mar. 2023 was 14.06. Petroleo Brasileiro Petrobras's debt to revenue ratio for the quarter that ended in Mar. 2023 was 0.50. As of today, Petroleo Brasileiro Petrobras's Altman Z-Score is 1.99.

Competitive Comparison

For the Oil & Gas Integrated subindustry, Petroleo Brasileiro Petrobras'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.

Annual Data Quarterly Data

Petroleo Brasileiro Petrobras Financial Strength Distribution

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

* The bar in red indicates where Petroleo Brasileiro Petrobras's Financial Strength falls in comparison to its industry or sector. The grey bar indicates the Financial Strength's extreme value range as defined by GuruFocus.

Petroleo Brasileiro Petrobras 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:

Petroleo Brasileiro Petrobras's Interest Expense for the months ended in Mar. 2023 was $-840 Mil. Its Operating Income for the months ended in Mar. 2023 was $11,811 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2023 was $43,609 Mil.

Petroleo Brasileiro Petrobras's Interest Coverage for the quarter that ended in Mar. 2023 is

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2023 )	/	Interest Expense (Q: Mar. 2023 )
	=	-1	*	11811	/	-840
	=	14.06

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

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

Petroleo Brasileiro Petrobras's Debt to Revenue Ratio for the quarter that ended in Mar. 2023 is

Debt to Revenue Ratio	=	Total Debt (Q: Mar. 2023 )			/	Revenue
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Revenue
	=	(9740	+	43609)	/	107084
	=	0.50

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.

Petroleo Brasileiro Petrobras has a Z-score of 1.99, indicating it is in Grey Zones. This implies that Petroleo Brasileiro Petrobras is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 1.99 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* 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.

Petroleo Brasileiro Petrobras (NYSE:PBR) 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.

Petroleo Brasileiro Petrobras has the Financial Strength Rank of 6.

Petroleo Brasileiro Petrobras Financial Strength Related Terms

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Petroleo Brasileiro Petrobras (NYSE:PBR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Petroleo Brasileiro SA Petrobras (NYSE:PBR) » Definitions » Financial Strength

Traded in Other Exchanges

PBR.A:USA PBRN:Mexico PBRA:Mexico XPBRA:Spain XPBR:Spain PJXC:Germany PETR4:Brazil PETR3:Brazil

Address

Avenida Republica do Chile, 65, Rio de Janeiro, RJ, BRA, 20031-912

Website

https://www.petrobras.com.br

Petrobras is a Brazil-based integrated energy company controlled by the Brazilian government. The company focuses on exploration and production for oil and gas in Brazilian offshore fields. Production in 2021 was 2.8 million barrels of oil equivalent a day (83% oil production), and reserves stood at 9.9 billion boe (85% oil). At year-end 2021, Petrobras operated 12 refineries in Brazil with capacity of 1.9 million barrels a day and distributes refined products and natural gas throughout Brazil.