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Zambeef Products (LUS:ZAMBEEF) Financial Strength : 9 (As of Sep. 2022)


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What is Zambeef Products Financial Strength?

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

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.

Zambeef Products's Interest Coverage for the quarter that ended in Sep. 2022 was 1.65. Zambeef Products's debt to revenue ratio for the quarter that ended in Sep. 2022 was 0.18. As of today, Zambeef Products's Altman Z-Score is 1.31.


Competitive Comparison of Zambeef Products's Financial Strength

For the Packaged Foods subindustry, Zambeef Products'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.


Zambeef Products's Financial Strength Distribution in the Consumer Packaged Goods Industry

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

* The bar in red indicates where Zambeef Products's Financial Strength falls into.



Zambeef Products 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:

Zambeef Products's Interest Expense for the months ended in Sep. 2022 was ZMW-58 Mil. Its Operating Income for the months ended in Sep. 2022 was ZMW96 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2022 was ZMW439 Mil.

Zambeef Products's Interest Coverage for the quarter that ended in Sep. 2022 is

Interest Coverage=-1*Operating Income (Q: Sep. 2022 )/Interest Expense (Q: Sep. 2022 )
=-1*95.511/-57.83
=1.65

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

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Zambeef Products PLC interest coverage is 2.79, which is low.

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

Zambeef Products's Debt to Revenue Ratio for the quarter that ended in Sep. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(530.371 + 438.819) / 5450.852
=0.18

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.

Zambeef Products has a Z-score of 1.31, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.31 is in distress zone. This implies bankruptcy possibility in the next two years.

* 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.


Zambeef Products  (LUS:ZAMBEEF) 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.

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


Zambeef Products Financial Strength Related Terms

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Zambeef Products (LUS:ZAMBEEF) Business Description

Traded in Other Exchanges
Address
Manda Road, Plot 4970, Industrial Area, Lusaka, ZMB
Zambeef Products PLC is a food retailer engaged in the production, processing, distribution, and retailing of beef, chicken, pork, milk, dairy products, eggs, stockfeed, and flour. The company also has row cropping operations of maize, soya beans, and wheat crops under irrigation. The company's reportable segment includes Retailing and cold chain food products and Cropping and milling. The majority of the revenue for the company is generated from its cropping and milling segment which is involved in selling of sells wheat, soya and maize grain as well as flour mill and bread.

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