What is Samvardhana Motherson International Financial Strength?
Samvardhana Motherson International has the Financial Strength Rank of 5.
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.
Samvardhana Motherson International's Interest Coverage for the quarter that ended in Dec. 2023 was 2.18.
Samvardhana Motherson International's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.00.
As of today, Samvardhana Motherson International's Altman Z-Score is 2.33.
Competitive Comparison of Samvardhana Motherson International's Financial Strength
For the Auto Parts subindustry, Samvardhana Motherson International'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.
Samvardhana Motherson International's Financial Strength Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Samvardhana Motherson International's Financial Strength distribution charts can be found below:
* The bar in red indicates where Samvardhana Motherson International's Financial Strength falls into.
Samvardhana Motherson International 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:
Samvardhana Motherson International's Interest Expense for the
months ended in Dec. 2023 was ₹-6,203 Mil. Its Operating Income for the
months ended in Dec. 2023 was ₹13,532 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was ₹0 Mil.
Samvardhana Motherson International's Interest Coverage for the quarter that ended in Dec. 2023 is
The higher the ratio, the stronger the company's financial strength is.
2. Debt to revenue ratio. The lower, the better.
Samvardhana Motherson International's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is
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.
Samvardhana Motherson International has a Z-score of 2.33, indicating it is in Grey Zones. This implies that Samvardhana Motherson International 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.
Samvardhana Motherson International (NSE:MOTHERSON) Business Description
Traded in Other Exchanges
Address
Noida-Greater Noida Expressway, 11th Floor, Plot No. 1, Sector-127, Noida, UP, IND, 201301
Samvardhana Motherson International Ltd is a manufacturer of automotive wiring harnesses and plastic components and modules. The products include wiring harnesses, mirrors for passenger cars, injection molded products, modules including dashboards, door trims, bumpers, blow moulded components, liquid silicone rubber molded components, injection molding tools, extruded rubber products, precision machined metal components, and waste recycling systems. The Company has Four reportable segments such as Wiring Harness, Modules and polymer products, Vision systems and Emerging businesses. The Company makes majority of the revenue from Modules and polymer products segment which is engaged in manufacturing and supplies of plastic parts and system modules for vehicle interiors and exteriors.
Samvardhana Motherson International (NSE:MOTHERSON) Headlines
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