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Fauji Fertilizer Bin Qasim (KAR:FFBL) Financial Strength : 6 (As of Mar. 2024)


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What is Fauji Fertilizer Bin Qasim Financial Strength?

Fauji Fertilizer Bin Qasim 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.

Fauji Fertilizer Bin Qasim's Interest Coverage for the quarter that ended in Mar. 2024 was 4.30. Fauji Fertilizer Bin Qasim's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.15. As of today, Fauji Fertilizer Bin Qasim's Altman Z-Score is 2.45.


Competitive Comparison of Fauji Fertilizer Bin Qasim's Financial Strength

For the Agricultural Inputs subindustry, Fauji Fertilizer Bin Qasim'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.


Fauji Fertilizer Bin Qasim's Financial Strength Distribution in the Agriculture Industry

For the Agriculture industry and Basic Materials sector, Fauji Fertilizer Bin Qasim's Financial Strength distribution charts can be found below:

* The bar in red indicates where Fauji Fertilizer Bin Qasim's Financial Strength falls into.



Fauji Fertilizer Bin Qasim 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:

Fauji Fertilizer Bin Qasim's Interest Expense for the months ended in Mar. 2024 was ₨-1,854 Mil. Its Operating Income for the months ended in Mar. 2024 was ₨7,971 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ₨19,593 Mil.

Fauji Fertilizer Bin Qasim'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*7970.933/-1854.184
=4.30

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

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

Fauji Fertilizer Bin Qasim'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
=(13271.043 + 19592.939) / 214879.796
=0.15

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.

Fauji Fertilizer Bin Qasim has a Z-score of 2.45, indicating it is in Grey Zones. This implies that Fauji Fertilizer Bin Qasim 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 2.45 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.


Fauji Fertilizer Bin Qasim  (KAR:FFBL) 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.

Fauji Fertilizer Bin Qasim has the Financial Strength Rank of 6.


Fauji Fertilizer Bin Qasim Financial Strength Related Terms

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Fauji Fertilizer Bin Qasim (KAR:FFBL) Business Description

Traded in Other Exchanges
N/A
Address
Phase II, DHA, Jinnah Boulevard, FFBL Tower, C1/C2, Sector B, Islamabad, PAK
Fauji Fertilizer Bin Qasim Ltd manufactures granular urea and di-ammonium phosphate (DAP) fertilizers. It is mainly involved in the manufacturing and distribution of chemical fertilizers for the farmers and agriculture sector of Pakistan. It operates in four segments, Fertilizers, Power, Meat and Food. Through its operating segments, the firm manufactures, purchases and markets fertilizers, generates and supplies electricity, unit for halal slaughtering of animals to obtain meat for local and export sale, and produce multi-brand dairy products. The Fertilizers segment accounts for the majority of revenue. The company Geographically operates in pakistan.

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