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Brown Advisory US Smaller (LSE:BASC) Financial Strength : 8 (As of Dec. 2023)


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What is Brown Advisory US Smaller Financial Strength?

Brown Advisory US Smaller has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Brown Advisory US Smaller Companies PLC 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.

GuruFocus does not calculate Brown Advisory US Smaller's interest coverage with the available data. Brown Advisory US Smaller's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.00. Altman Z-Score does not apply to banks and insurance companies.


Brown Advisory US Smaller 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:

Brown Advisory US Smaller's Interest Expense for the months ended in Dec. 2023 was £0.00 Mil. Its Operating Income for the months ended in Dec. 2023 was £0.00 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was £0.00 Mil.

Brown Advisory US Smaller's Interest Coverage for the quarter that ended in Dec. 2023 is

Brown Advisory US Smaller had no long-term debt (1).

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

Good Sign:

Brown Advisory US Smaller Companies PLC has no debt.

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

Brown Advisory US Smaller'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) / 7.21
=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.

Altman Z-Score does not apply to banks and insurance companies.

* 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.


Brown Advisory US Smaller  (LSE:BASC) 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.

Brown Advisory US Smaller has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.


Brown Advisory US Smaller Financial Strength Related Terms

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Brown Advisory US Smaller (LSE:BASC) Business Description

Traded in Other Exchanges
Address
125 London Wall, 6th Floor, Bastion House, London, GBR, EC2Y 5AS
Brown Advisory US Smaller Companies PLC is an investment trust. The company's main business is portfolio investment. Its investment objective is to achieve long-term capital growth by investing in a diversified portfolio of quoted US smaller and medium-sized companies. The company's investing approach is long-term quality companies with limited downside risk. It focuses on capital preservation and a risk-averse approach. The company invests in consumer discretionary, consumer staples, energy, financial services, healthcare, materials and processing, producer durables, technology, and utilities sectors.