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Stellantis NV (Stellantis NV) Financial Strength : 7 (As of Dec. 2023)


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What is Stellantis NV Financial Strength?

Stellantis NV has the Financial Strength Rank of 7.

Good Sign:

Stellantis NV shows strong financial strength.

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.

Stellantis NV's Interest Coverage for the quarter that ended in Dec. 2023 was 13.62. Stellantis NV's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.16. As of today, Stellantis NV's Altman Z-Score is 2.33.


Competitive Comparison of Stellantis NV's Financial Strength

For the Auto Manufacturers subindustry, Stellantis NV'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.


Stellantis NV's Financial Strength Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Stellantis NV's Financial Strength distribution charts can be found below:

* The bar in red indicates where Stellantis NV's Financial Strength falls into.



Stellantis NV 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:

Stellantis NV's Interest Expense for the months ended in Dec. 2023 was $-737 Mil. Its Operating Income for the months ended in Dec. 2023 was $10,039 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $21,811 Mil.

Stellantis NV's Interest Coverage for the quarter that ended in Dec. 2023 is

Interest Coverage=-1*Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*10039.258/-737.186
=13.62

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

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

Stellantis NV's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(10318.43 + 21811.341) / 198857.142
=0.16

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.

Stellantis NV has a Z-score of 2.33, indicating it is in Grey Zones. This implies that Stellantis NV 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 2.33 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.


Stellantis NV  (NYSE:STLA) 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.

Stellantis NV has the Financial Strength Rank of 7.


Stellantis NV Financial Strength Related Terms

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Stellantis NV (Stellantis NV) Business Description

Address
Taurusavenue 1, Hoofddorp, NH, NLD, 2132 LS
Stellantis NV was formed on Jan. 16, 2021, from the merger of Fiat Chrysler Automobiles and PSA Group. The combination of the two companies created the world's fifth-largest automaker, with 14 automobile brands. In 2022, pro forma Stellantis had sales volume of 6.0 million vehicles and EUR 179.6 billion in revenue, albeit affected by the microchip shortage. Europe is Stellantis' largest market, accounting for 44% of 2022 global volume while North America and South America were 31% and 14%, respectively.