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Cyrela Brazil Realty Empreend e Part (BSP:CYRE3) Financial Strength : 6 (As of Mar. 2024)


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What is Cyrela Brazil Realty Empreend e Part Financial Strength?

Cyrela Brazil Realty Empreend e Part 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.

Cyrela Brazil Realty Empreend e Part's Interest Coverage for the quarter that ended in Mar. 2024 was 1.58. Cyrela Brazil Realty Empreend e Part's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.78. As of today, Cyrela Brazil Realty Empreend e Part's Altman Z-Score is 1.72.


Competitive Comparison of Cyrela Brazil Realty Empreend e Part's Financial Strength

For the Residential Construction subindustry, Cyrela Brazil Realty Empreend e Part'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.


Cyrela Brazil Realty Empreend e Part's Financial Strength Distribution in the Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, Cyrela Brazil Realty Empreend e Part's Financial Strength distribution charts can be found below:

* The bar in red indicates where Cyrela Brazil Realty Empreend e Part's Financial Strength falls into.



Cyrela Brazil Realty Empreend e Part 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:

Cyrela Brazil Realty Empreend e Part's Interest Expense for the months ended in Mar. 2024 was R$-127 Mil. Its Operating Income for the months ended in Mar. 2024 was R$202 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was R$3,954 Mil.

Cyrela Brazil Realty Empreend e Part's Interest Coverage for the quarter that ended in Mar. 2024 is

Interest Coverage=-1*Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*201.819/-127.446
=1.58

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

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

Cyrela Brazil Realty Empreend e Part's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(941.344 + 3954.459) / 6291.644
=0.78

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.

Cyrela Brazil Realty Empreend e Part has a Z-score of 1.72, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.72 is in distress zone. This implies bankruptcy 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.


Cyrela Brazil Realty Empreend e Part  (BSP:CYRE3) 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.

Cyrela Brazil Realty Empreend e Part has the Financial Strength Rank of 6.


Cyrela Brazil Realty Empreend e Part Financial Strength Related Terms

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Cyrela Brazil Realty Empreend e Part (BSP:CYRE3) Business Description

Traded in Other Exchanges
Address
Rua do Rocio, 109, 2nd Floor, Room 01, Sao Paulo, SP, BRA, 04552-000
Cyrela Brazil Realty SA Empreend e Part is a Brazilian construction company engaged in the development and construction of residential properties, individually or together with other entities. The company has four operating segments; the Cyrela segment includes real estate projects classified by the Launch Committee as high-end and luxury, both of the Parent and joint ventures, the Living segment includes real estate projects classified by the Launch Committee as Living, both of the Parent and joint ventures, CVA segment includes real estate projects classified by the Launch Committee as Casa Verde e Amarela, both of the Parent and joint ventures and Other segment include land subdivision and service rendering activities.

Cyrela Brazil Realty Empreend e Part (BSP:CYRE3) Headlines

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