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Coronado Global Resources (ASX:CRN) Financial Strength : 6 (As of Dec. 2023)


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What is Coronado Global Resources Financial Strength?

Coronado Global Resources 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.

Coronado Global Resources's Interest Coverage for the quarter that ended in Dec. 2023 was 0.18. Coronado Global Resources's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.12. As of today, Coronado Global Resources's Altman Z-Score is 2.18.


Competitive Comparison of Coronado Global Resources's Financial Strength

For the Coking Coal subindustry, Coronado Global Resources'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.


Coronado Global Resources's Financial Strength Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Coronado Global Resources's Financial Strength distribution charts can be found below:

* The bar in red indicates where Coronado Global Resources's Financial Strength falls into.



Coronado Global Resources 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:

Coronado Global Resources's Interest Expense for the months ended in Dec. 2023 was A$-42 Mil. Its Operating Income for the months ended in Dec. 2023 was A$8 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was A$444 Mil.

Coronado Global Resources'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*7.607/-41.692
=0.18

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

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

Coronado Global Resources'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
=(34.181 + 443.77) / 3996.298
=0.12

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.

Coronado Global Resources has a Z-score of 2.18, indicating it is in Grey Zones. This implies that Coronado Global Resources 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 2.18 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.


Coronado Global Resources  (ASX:CRN) 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.

Coronado Global Resources has the Financial Strength Rank of 6.


Coronado Global Resources Financial Strength Related Terms

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Coronado Global Resources (ASX:CRN) Business Description

Traded in Other Exchanges
Address
345 Queen Street, Level 33, Central Plaza One, Brisbane, QLD, AUS, 4000
Coronado Global Resources Inc is a producer of high-quality metallurgical coal, an essential element in the production of steel. Its geographical segment includes Australia and the United States. It derives the majority of its revenue from Australia. The Company's mining operations and development projects are located in Queensland, Australia, Pennsylvania, Virginia, and West Virginia in the United States.

Coronado Global Resources (ASX:CRN) Headlines

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