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Warpaint London (LSE:W7L) Financial Strength : 9 (As of Dec. 2023)


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What is Warpaint London Financial Strength?

Warpaint London has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Warpaint London 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.

Warpaint London's Interest Coverage for the quarter that ended in Dec. 2023 was 45.58. Warpaint London's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.05. As of today, Warpaint London's Altman Z-Score is 15.70.


Competitive Comparison of Warpaint London's Financial Strength

For the Household & Personal Products subindustry, Warpaint London'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.


Warpaint London's Financial Strength Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Warpaint London's Financial Strength distribution charts can be found below:

* The bar in red indicates where Warpaint London's Financial Strength falls into.



Warpaint London 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:

Warpaint London's Interest Expense for the months ended in Dec. 2023 was £-0.27 Mil. Its Operating Income for the months ended in Dec. 2023 was £12.22 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was £4.19 Mil.

Warpaint London'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*12.216/-0.268
=45.58

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

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

Warpaint London'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
=(1.259 + 4.19) / 105.81
=0.05

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.

Warpaint London has a Z-score of 15.70, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 15.7 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.


Warpaint London  (LSE:W7L) 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.

Warpaint London has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.


Warpaint London Financial Strength Related Terms

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Warpaint London (LSE:W7L) Business Description

Traded in Other Exchanges
Address
Units B&C, Orbital Forty Six, The Ridgeway Trading Estate, Iver, Bucks, GBR, SL0 9HW
Warpaint London PLC is engaged in color business under the brand W7 with a focus on the gifting market. The reportable segments of the company are Own Brand and Closeout. The Branded relates to the sale of own branded products whereas 'close-out' relates to the purchase of third party stock which is then repackaged for sale. The company generates a majority of its revenue from its Own brand segment. Geographically, the company derives maximum revenue from the UK and operates in Europe, the USA, Australia, New Zealand, and the Rest of the World.

Warpaint London (LSE:W7L) Headlines

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