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Betterware de MexicoPI de CV (Betterware de MexicoPI de CV) Financial Strength : 5 (As of Mar. 2024)


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What is Betterware de MexicoPI de CV Financial Strength?

Betterware de MexicoPI de CV has the Financial Strength Rank of 5.

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.

Betterware de MexicoPI de CV's Interest Coverage for the quarter that ended in Mar. 2024 was 4.01. Betterware de MexicoPI de CV's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.38. As of today, Betterware de MexicoPI de CV's Altman Z-Score is 2.76.


Competitive Comparison of Betterware de MexicoPI de CV's Financial Strength

For the Specialty Retail subindustry, Betterware de MexicoPI de CV'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.


Betterware de MexicoPI de CV's Financial Strength Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Betterware de MexicoPI de CV's Financial Strength distribution charts can be found below:

* The bar in red indicates where Betterware de MexicoPI de CV's Financial Strength falls into.



Betterware de MexicoPI de CV 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:

Betterware de MexicoPI de CV's Interest Expense for the months ended in Mar. 2024 was $-9.9 Mil. Its Operating Income for the months ended in Mar. 2024 was $39.8 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $288.1 Mil.

Betterware de MexicoPI de CV'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*39.77/-9.907
=4.01

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

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

Betterware de MexicoPI de CV'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
=(39.407 + 288.084) / 868.268
=0.38

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.

Betterware de MexicoPI de CV has a Z-score of 2.76, indicating it is in Grey Zones. This implies that Betterware de MexicoPI de CV 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 2.76 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.


Betterware de MexicoPI de CV  (NAS:BWMX) 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.

Betterware de MexicoPI de CV has the Financial Strength Rank of 5.


Betterware de MexicoPI de CV Financial Strength Related Terms

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Betterware de MexicoPI de CV (Betterware de MexicoPI de CV) Business Description

Traded in Other Exchanges
Address
Luis Enrique Williams 549, Colonia Belenes Norte, Zapopan, JAL, MEX, 45145
Betterware de Mexico SAPI de CV is a direct-to-consumer selling company. The company operates through two business segments: the home organization products (Betterware segment or BWM segment) and the beauty and personal care products (B and PC) (JAFRA segment). The Betterware's segment is divided in six categories of the home organization: i) Kitchen and food preservation, ii) Home solutions, iii) Bedroom, iv) Bathroom, v) Laundry and Cleaning and vi) Tech and mobility. The JAFRA's segment is divided in four categories of the beauty and personal care: i) fragrance, ii) color, iii) skin care and iv) toiletries. The company's segments products are sold in twelve catalogs published throughout the year. The company operates mainly in Mexico and the United States.

Betterware de MexicoPI de CV (Betterware de MexicoPI de CV) Headlines

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