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Barbeque-Nation Hospitality (BOM:543283) Financial Strength : 4 (As of Dec. 2023)


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What is Barbeque-Nation Hospitality Financial Strength?

Barbeque-Nation Hospitality 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.

Barbeque-Nation Hospitality's Interest Coverage for the quarter that ended in Dec. 2023 was 1.31. Barbeque-Nation Hospitality's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.00. As of today, Barbeque-Nation Hospitality's Altman Z-Score is 2.32.


Competitive Comparison of Barbeque-Nation Hospitality's Financial Strength

For the Restaurants subindustry, Barbeque-Nation Hospitality'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.


Barbeque-Nation Hospitality's Financial Strength Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Barbeque-Nation Hospitality's Financial Strength distribution charts can be found below:

* The bar in red indicates where Barbeque-Nation Hospitality's Financial Strength falls into.



Barbeque-Nation Hospitality 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:

Barbeque-Nation Hospitality's Interest Expense for the months ended in Dec. 2023 was ₹-190 Mil. Its Operating Income for the months ended in Dec. 2023 was ₹249 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was ₹0 Mil.

Barbeque-Nation Hospitality'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*248.6/-189.98
=1.31

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

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

Barbeque-Nation Hospitality'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
=(0 + 0) / 13235
=0.00

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.

Barbeque-Nation Hospitality has a Z-score of 2.32, indicating it is in Grey Zones. This implies that Barbeque-Nation Hospitality 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 2.32 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.


Barbeque-Nation Hospitality  (BOM:543283) 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.

Barbeque-Nation Hospitality has the Financial Strength Rank of 4.


Barbeque-Nation Hospitality Financial Strength Related Terms

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Barbeque-Nation Hospitality (BOM:543283) Business Description

Traded in Other Exchanges
Address
Sarjapur Road, Unit No. 601 & 602, 6th Floor, Doddakannalli Village, Varthur Hobli, Bengaluru, KA, IND, 560035
Barbeque-Nation Hospitality Ltd is a casual dining restaurant in India. It offers the best quality of food offerings, ambiance, and services to customers. It also owns and operates TItalian restaurants (under the brand name of Toscano, Collage, and La Terrace) and UBQ by Barbeque Nation. The company's only segment is setting up and managing restaurant business. Geographically, it derives a majority of revenue from India.

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