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Transportadora de Gas del Sur (Transportadora de Gas del Sur) Financial Strength

: 7 (As of Sep. 2023)
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Transportadora de Gas del Sur has the Financial Strength Rank of 7.

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.

Transportadora de Gas del Sur's Interest Coverage for the quarter that ended in Sep. 2023 was 4.27. Transportadora de Gas del Sur's debt to revenue ratio for the quarter that ended in Sep. 2023 was 0.69. As of today, Transportadora de Gas del Sur's Altman Z-Score is 5.00.


Competitive Comparison

For the Oil & Gas Integrated subindustry, Transportadora de Gas del Sur'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.


Transportadora de Gas del Sur Financial Strength Distribution

For the Oil & Gas industry and Energy sector, Transportadora de Gas del Sur's Financial Strength distribution charts can be found below:

* The bar in red indicates where Transportadora de Gas del Sur's Financial Strength falls into.



Transportadora de Gas del Sur 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:

Transportadora de Gas del Sur's Interest Expense for the months ended in Sep. 2023 was $-11.6 Mil. Its Operating Income for the months ended in Sep. 2023 was $49.4 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was $510.1 Mil.

Transportadora de Gas del Sur'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*49.393/-11.566
=4.27

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

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

Transportadora de Gas del Sur'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
=(63.424 + 510.08) / 827.576
=0.69

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.

Transportadora de Gas del Sur has a Z-score of 5.00, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 5 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.


Transportadora de Gas del Sur  (NYSE:TGS) 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.

Transportadora de Gas del Sur has the Financial Strength Rank of 7.


Transportadora de Gas del Sur Financial Strength Related Terms

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Transportadora de Gas del Sur (Transportadora de Gas del Sur) Business Description

Traded in Other Exchanges
Address
Don Bosco 3672, 5th Floor, Buenos Aires, ARG, C1206ABF
Transportadora de Gas del Sur SA is one of the largest transporters of natural gas in Latin America. The company's operating segments include Natural Gas Transportation, Production and Commercialization of Liquids, Other Services, and Telecommunications. It generates maximum revenue from the Production and Commercialization of the Liquids segment. Geographically, it derives the majority of its revenue from Argentina.

Transportadora de Gas del Sur (Transportadora de Gas del Sur) Headlines

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