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Lavvi Empreendimentos Imobiliarios (BSP:LAVV3) Financial Strength : 8 (As of Mar. 2024)


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What is Lavvi Empreendimentos Imobiliarios Financial Strength?

Lavvi Empreendimentos Imobiliarios has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Lavvi Empreendimentos Imobiliarios SA shows strong financial strength.

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.

Lavvi Empreendimentos Imobiliarios's Interest Coverage for the quarter that ended in Mar. 2024 was 27.31. Lavvi Empreendimentos Imobiliarios's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.39. As of today, Lavvi Empreendimentos Imobiliarios's Altman Z-Score is 2.58.


Competitive Comparison of Lavvi Empreendimentos Imobiliarios's Financial Strength

For the Real Estate Services subindustry, Lavvi Empreendimentos Imobiliarios'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.


Lavvi Empreendimentos Imobiliarios's Financial Strength Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Lavvi Empreendimentos Imobiliarios's Financial Strength distribution charts can be found below:

* The bar in red indicates where Lavvi Empreendimentos Imobiliarios's Financial Strength falls into.



Lavvi Empreendimentos Imobiliarios 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:

Lavvi Empreendimentos Imobiliarios's Interest Expense for the months ended in Mar. 2024 was R$-2 Mil. Its Operating Income for the months ended in Mar. 2024 was R$61 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was R$441 Mil.

Lavvi Empreendimentos Imobiliarios'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*61.348/-2.246
=27.31

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

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

Lavvi Empreendimentos Imobiliarios'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
=(3.184 + 441.4) / 1140.848
=0.39

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.

Lavvi Empreendimentos Imobiliarios has a Z-score of 2.58, indicating it is in Grey Zones. This implies that Lavvi Empreendimentos Imobiliarios 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 2.58 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.


Lavvi Empreendimentos Imobiliarios  (BSP:LAVV3) 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.

Lavvi Empreendimentos Imobiliarios has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.


Lavvi Empreendimentos Imobiliarios Financial Strength Related Terms

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Lavvi Empreendimentos Imobiliarios (BSP:LAVV3) Business Description

Traded in Other Exchanges
N/A
Address
Avenida Angelica, no 2.346, 8th Floor, Conj. 84, Consolacao, Sao Paulo, SP, BRA, CEP 01228-200
Lavvi Empreendimentos Imobiliarios SA is engaged in purchase and sale of finished properties or the build, residential and commercial, ideal land and fractions, the lease and management of real estate; the construction of real estate; the rental of own or third party properties; the break up or allotment of own land; planning, promotion, development under real estate development, the sale and purchase of housing and / or commercial units; the provision of services in matters relating to the real estate market.

Lavvi Empreendimentos Imobiliarios (BSP:LAVV3) Headlines

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