Banca Popolare di Sondrio SpA (MIL:BPSO) Financial Strength : 2 (As of Dec. 2023)

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What is Banca Popolare di Sondrio SpA Financial Strength?

Banca Popolare di Sondrio SpA has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Banca Popolare di Sondrio SpA displays poor financial strength. Usually, this is caused by too much debt for the company.

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 Banca Popolare di Sondrio SpA's interest coverage with the available data. Banca Popolare di Sondrio SpA's debt to revenue ratio for the quarter that ended in Dec. 2023 was 2.82. Altman Z-Score does not apply to banks and insurance companies.

Banca Popolare di Sondrio SpA 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:

Banca Popolare di Sondrio SpA's Interest Expense for the months ended in Dec. 2023 was €-257 Mil. Its Operating Income for the months ended in Dec. 2023 was €0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was €5,068 Mil.

Banca Popolare di Sondrio SpA's Interest Coverage for the quarter that ended in Dec. 2023 is

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

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

Banca Popolare di Sondrio SpA'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	+	5067.707)	/	1798
	=	2.82

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.

Banca Popolare di Sondrio SpA (MIL:BPSO) 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.

Banca Popolare di Sondrio SpA Financial Strength Related Terms

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Banca Popolare di Sondrio SpA (MIL:BPSO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Banca Popolare di Sondrio SpA (MIL:BPSO) » Definitions » Financial Strength

Comparable Companies

Traded in Other Exchanges

0NWJ:UK 593:Germany

Address

Piazza Garibaldi, 16, Sondrio, ITA, 23100

Website

https://www.popso.it

Banca Popolare di Sondrio SpA is a full-service cooperative bank operating primarily in Northern Italy but also in Central Italy and Switzerland. The bank's overall strategy is geared toward sustaining local economies, particularly small- and medium-sized businesses and households. most of the bank's business is generated through business banking, followed by individual banking activities. The bank generates most of its net revenue through net interest income, followed by net fees and commissions and net trading income. A majority of the bank's earning assets are mortgage loans. The bank's lending strategy revolves around a low propensity for risk and an emphasis on diversification.