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Fuller Smith & Turner (LSE:FSTA) Financial Strength : 5 (As of Sep. 2023)


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What is Fuller Smith & Turner Financial Strength?

Fuller Smith & Turner has the Financial Strength Rank of 5.

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.

Fuller Smith & Turner's Interest Coverage for the quarter that ended in Sep. 2023 was 3.06. Fuller Smith & Turner's debt to revenue ratio for the quarter that ended in Sep. 2023 was 0.55. As of today, Fuller Smith & Turner's Altman Z-Score is 1.98.


Competitive Comparison of Fuller Smith & Turner's Financial Strength

For the Restaurants subindustry, Fuller Smith & Turner'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.


Fuller Smith & Turner's Financial Strength Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Fuller Smith & Turner's Financial Strength distribution charts can be found below:

* The bar in red indicates where Fuller Smith & Turner's Financial Strength falls into.



Fuller Smith & Turner 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:

Fuller Smith & Turner's Interest Expense for the months ended in Sep. 2023 was £-7.0 Mil. Its Operating Income for the months ended in Sep. 2023 was £21.4 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was £197.6 Mil.

Fuller Smith & Turner's Interest Coverage for the quarter that ended in Sep. 2023 is

Interest Coverage=-1*Operating Income (Q: Sep. 2023 )/Interest Expense (Q: Sep. 2023 )
=-1*21.4/-7
=3.06

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

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

Fuller Smith & Turner's Debt to Revenue Ratio for the quarter that ended in Sep. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(10.8 + 197.6) / 377.6
=0.55

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.

Fuller Smith & Turner has a Z-score of 1.98, indicating it is in Grey Zones. This implies that Fuller Smith & Turner 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 1.98 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.


Fuller Smith & Turner  (LSE:FSTA) 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.

Fuller Smith & Turner has the Financial Strength Rank of 5.


Fuller Smith & Turner Financial Strength Related Terms

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Fuller Smith & Turner (LSE:FSTA) Business Description

Traded in Other Exchanges
Address
86-93 Strand-on-the-Green, Pier House, London, GBR, W4 3NN
Fuller Smith & Turner PLC is a family-owned operator of pubs and hotels in the United Kingdom. The company functions through two segments: Managed Pubs and Hotels and Tenanted Inns. Managed Pubs and Hotels, which comprises managed pubs, managed hotels, Bel & The Dragon, and Cotswold Inns & Hotels. Tenanted Inns, which comprises pubs operated by third parties under tenancy or lease agreements. Managed Pubs and Hotels segment generates most of the revenue for the company.

Fuller Smith & Turner (LSE:FSTA) Headlines