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BGOUF (Bang & Olufsen AS) Financial Strength : 6 (As of Feb. 2025)


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What is Bang & Olufsen AS Financial Strength?

Bang & Olufsen AS has the Financial Strength Rank of 6.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and 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.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Bang & Olufsen AS's Interest Coverage for the quarter that ended in Feb. 2025 was 1.47. Bang & Olufsen AS's debt to revenue ratio for the quarter that ended in Feb. 2025 was 0.13. As of today, Bang & Olufsen AS's Altman Z-Score is 2.92.


Competitive Comparison of Bang & Olufsen AS's Financial Strength

For the Consumer Electronics subindustry, Bang & Olufsen AS'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.


Bang & Olufsen AS's Financial Strength Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Bang & Olufsen AS's Financial Strength distribution charts can be found below:

* The bar in red indicates where Bang & Olufsen AS's Financial Strength falls into.


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Bang & Olufsen AS 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:

Bang & Olufsen AS's Interest Expense for the months ended in Feb. 2025 was $-2.4 Mil. Its Operating Income for the months ended in Feb. 2025 was $3.5 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Feb. 2025 was $19.4 Mil.

Bang & Olufsen AS's Interest Coverage for the quarter that ended in Feb. 2025 is

Interest Coverage=-1*Operating Income (Q: Feb. 2025 )/Interest Expense (Q: Feb. 2025 )
=-1*3.49/-2.373
=1.47

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

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

Bang & Olufsen AS's Debt to Revenue Ratio for the quarter that ended in Feb. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Feb. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(26.803 + 19.404) / 352.352
=0.13

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.

Bang & Olufsen AS has a Z-score of 2.92, indicating it is in Grey Zones. This implies that Bang & Olufsen AS 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 2.92 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.


Bang & Olufsen AS  (OTCPK:BGOUF) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Bang & Olufsen AS has the Financial Strength Rank of 6.


Bang & Olufsen AS Financial Strength Related Terms

Thank you for viewing the detailed overview of Bang & Olufsen AS's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Bang & Olufsen AS Business Description

Traded in Other Exchanges
Address
Bang og Olufsen Alle 1, Struer, DNK, DK-7600
Bang & Olufsen AS designs, develops, and markets audio and video products including music systems, loudspeakers, television sets, and multimedia products. Geographically, it derives a majority of its revenue from EMEA, Followed by Americas, and APAC. It generates maximum revenue from the Staged product category followed by On-the-go; Flexible Living Brand Partnering and other activities.

Bang & Olufsen AS Headlines

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