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Central Azucarera De Tarlac (PHS:CAT) Financial Strength : 4 (As of Mar. 2024)


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What is Central Azucarera De Tarlac Financial Strength?

Central Azucarera De Tarlac has the Financial Strength Rank of 4.

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.

Central Azucarera De Tarlac's Interest Coverage for the quarter that ended in Mar. 2024 was 8.40. Central Azucarera De Tarlac's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.53. As of today, Central Azucarera De Tarlac's Altman Z-Score is 0.86.


Competitive Comparison of Central Azucarera De Tarlac's Financial Strength

For the Confectioners subindustry, Central Azucarera De Tarlac'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.


Central Azucarera De Tarlac's Financial Strength Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Central Azucarera De Tarlac's Financial Strength distribution charts can be found below:

* The bar in red indicates where Central Azucarera De Tarlac's Financial Strength falls into.



Central Azucarera De Tarlac 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:

Central Azucarera De Tarlac's Interest Expense for the months ended in Mar. 2024 was ₱-30 Mil. Its Operating Income for the months ended in Mar. 2024 was ₱254 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ₱392 Mil.

Central Azucarera De Tarlac'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*254.325/-30.271
=8.40

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

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

Central Azucarera De Tarlac'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
=(1042.429 + 392.448) / 2695.268
=0.53

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.

Central Azucarera De Tarlac has a Z-score of 0.86, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.86 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.


Central Azucarera De Tarlac  (PHS:CAT) 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.

Central Azucarera De Tarlac has the Financial Strength Rank of 4.


Central Azucarera De Tarlac Financial Strength Related Terms

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Central Azucarera De Tarlac (PHS:CAT) Business Description

Traded in Other Exchanges
N/A
Address
San miguel, Tarlac, PHL, 1231
Central Azucarera De Tarlac Inc is a company engaged in the business of sugar milling. It engages in the production of raw and refined sugar, alcohol, liquid carbon dioxide and yeast. It operates through the following segments: Sugar and by-Products, Real estate and Industrial services. The Sugar and by-Products segment involve the production of sugar and sugar by-products. Real estate and Industrial services include developing, leasing and selling real properties and other ancillary services. The Sugar and By-Products segment accounts majorly in the firm's revenue while it principally operates in the Philippines.

Central Azucarera De Tarlac (PHS:CAT) Headlines