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Americana Restaurants International (ADX:AMR) Financial Strength : 6 (As of Dec. 2023)


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What is Americana Restaurants International Financial Strength?

Americana Restaurants International has the Financial Strength Rank of 6.

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.

Americana Restaurants International's Interest Coverage for the quarter that ended in Dec. 2023 was 4.63. Americana Restaurants International's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.25. As of today, Americana Restaurants International's Altman Z-Score is 6.53.


Competitive Comparison of Americana Restaurants International's Financial Strength

For the Restaurants subindustry, Americana Restaurants 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.


Americana Restaurants International's Financial Strength Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Americana Restaurants International's Financial Strength distribution charts can be found below:

* The bar in red indicates where Americana Restaurants International's Financial Strength falls into.



Americana Restaurants 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:

Americana Restaurants International's Interest Expense for the months ended in Dec. 2023 was د.إ-30 Mil. Its Operating Income for the months ended in Dec. 2023 was د.إ140 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was د.إ1,253 Mil.

Americana Restaurants International'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*139.73/-30.159
=4.63

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

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

Americana Restaurants International'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
=(625.63 + 1253.299) / 7582.58
=0.25

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.

Americana Restaurants International has a Z-score of 6.53, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 6.53 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.


Americana Restaurants International  (ADX:AMR) 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.

Americana Restaurants International has the Financial Strength Rank of 6.


Americana Restaurants International Financial Strength Related Terms

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Americana Restaurants International (ADX:AMR) Business Description

Traded in Other Exchanges
Address
Al Rayyan Complex, Al Nahda, 17 Floor, Tower A, Sharjah, ARE
Americana Restaurants International PLC is a diversified, pan-regional restaurant platform operator. It operates iconic brands such as KFC, Pizza Hut, Hardee's, Krispy Kreme, and TGI Fridays, along with proprietary brands such as Wimpy and Chicken Tikka. The Group operates restaurants under a portfolio of different brands across key consumer verticals and occasions, including key Quick Service Restaurant (QSR) categories (chicken, burger, and pizza), fast casual, casual dining, indulgence, and coffee concepts. Its reportable business segments are; the Major Gulf Cooperation Council countries which include KSA, Kuwait, and UAE, Lower Gulf countries (comprising of Qatar, Oman, and Bahrain), North Africa (Egypt and Morocco), and Others (Kazakhstan, Iraq, Lebanon, and Jordan).

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