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Mostostal Zabrze-Holding (WAR:MSZ) Financial Strength : 7 (As of Dec. 2023)


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What is Mostostal Zabrze-Holding Financial Strength?

Mostostal Zabrze-Holding 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.

Mostostal Zabrze-Holding's Interest Coverage for the quarter that ended in Dec. 2023 was 19.75. Mostostal Zabrze-Holding's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.04. As of today, Mostostal Zabrze-Holding's Altman Z-Score is 3.33.


Competitive Comparison of Mostostal Zabrze-Holding's Financial Strength

For the Engineering & Construction subindustry, Mostostal Zabrze-Holding'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.


Mostostal Zabrze-Holding's Financial Strength Distribution in the Construction Industry

For the Construction industry and Industrials sector, Mostostal Zabrze-Holding's Financial Strength distribution charts can be found below:

* The bar in red indicates where Mostostal Zabrze-Holding's Financial Strength falls into.



Mostostal Zabrze-Holding 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:

Mostostal Zabrze-Holding's Interest Expense for the months ended in Dec. 2023 was zł-2 Mil. Its Operating Income for the months ended in Dec. 2023 was zł36 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was zł19 Mil.

Mostostal Zabrze-Holding'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*36.345/-1.84
=19.75

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

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

Mostostal Zabrze-Holding'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
=(16.241 + 18.864) / 922.188
=0.04

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.

Mostostal Zabrze-Holding has a Z-score of 3.33, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.33 is strong.

* 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.


Mostostal Zabrze-Holding  (WAR:MSZ) 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.

Mostostal Zabrze-Holding has the Financial Strength Rank of 7.


Mostostal Zabrze-Holding Financial Strength Related Terms

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


Mostostal Zabrze-Holding (WAR:MSZ) Business Description

Traded in Other Exchanges
N/A
Address
Ul. Freedom 191, Zabrze, POL, 41-800
Mostostal Zabrze-Holding SA is a Poland based company engaged in the business activities of general contracting of industrial projects, including power and environmental protection facilities and installations as well as public utility and commercial buildings, and subcontracting of specialist works. The group offers a comprehensive range of works from design and engineering, civil works, earth- and roadworks, production, and erection of steel structure, delivery, and installation of piping to the installation of process equipment and mechanical plant.

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