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Sibanye Stillwater (Sibanye Stillwater) Financial Strength

: 7 (As of Jun. 2023)
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Sibanye Stillwater has the Financial Strength Rank of 7.

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.

Sibanye Stillwater's Interest Coverage for the quarter that ended in Jun. 2023 was 8.49. Sibanye Stillwater's debt to revenue ratio for the quarter that ended in Jun. 2023 was 0.21. As of today, Sibanye Stillwater's Altman Z-Score is 2.57.


Competitive Comparison

For the Gold subindustry, Sibanye Stillwater'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.


Sibanye Stillwater Financial Strength Distribution

For the Metals & Mining industry and Basic Materials sector, Sibanye Stillwater's Financial Strength distribution charts can be found below:

* The bar in red indicates where Sibanye Stillwater's Financial Strength falls into.



Sibanye Stillwater 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:

Sibanye Stillwater's Interest Expense for the months ended in Jun. 2023 was $-62 Mil. Its Operating Income for the months ended in Jun. 2023 was $528 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2023 was $1,367 Mil.

Sibanye Stillwater's Interest Coverage for the quarter that ended in Jun. 2023 is

Interest Coverage=-1*Operating Income (Q: Jun. 2023 )/Interest Expense (Q: Jun. 2023 )
=-1*528.093/-62.204
=8.49

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

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

Sibanye Stillwater's Debt to Revenue Ratio for the quarter that ended in Jun. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(17.872 + 1366.619) / 6462.378
=0.21

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.

Sibanye Stillwater has a Z-score of 2.57, indicating it is in Grey Zones. This implies that Sibanye Stillwater 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 2.57 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.


Sibanye Stillwater  (NYSE:SBSW) 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.

Sibanye Stillwater has the Financial Strength Rank of 7.


Sibanye Stillwater Financial Strength Related Terms

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


Sibanye Stillwater (Sibanye Stillwater) Business Description

Address
Cnr 14th Avenue and Hendrik Potgieter Road, Bridgeview House, Building 11, Ground Floor, Lakeview Avenue, Constantia Office Park, Weltevreden Park, Roodepoort, GT, ZAF, 1709
Sibanye Stillwater Ltd is a South Africa-focused mining company. The Group currently owns and operates five underground and surface gold operations in South Africa: the Cooke, DRDGOLD, Driefontein, and Kloof operations in the West Witwatersrand region, and the Beatrix Operation in the southern Free State province. In addition to mining, the company owns and manages extraction and processing facilities at its operations, where gold-bearing ore is treated and beneficiated to produce gold dore. The gold dore is further refined at Rand Refinery into gold bars with a purity of at least 99.5% and is then sold on international markets. Sibanye holds a 44% interest in Rand Refinery, global refiners of gold, and the largest in Africa. Rand Refinery markets gold to customers around the world.

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