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Inpost (XAMS:INPST) Financial Strength : 4 (As of Dec. 2023)


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What is Inpost Financial Strength?

Inpost has the Financial Strength Rank of 4.

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.

Inpost's Interest Coverage for the quarter that ended in Dec. 2023 was 5.99. Inpost's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.63. As of today, Inpost's Altman Z-Score is 3.95.


Competitive Comparison of Inpost's Financial Strength

For the Specialty Business Services subindustry, Inpost'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.


Inpost's Financial Strength Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Inpost's Financial Strength distribution charts can be found below:

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



Inpost 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:

Inpost's Interest Expense for the months ended in Dec. 2023 was €-20 Mil. Its Operating Income for the months ended in Dec. 2023 was €117 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was €1,344 Mil.

Inpost'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*117.38/-19.601
=5.99

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

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

Inpost'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
=(171.353 + 1343.971) / 2424.008
=0.63

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.

Inpost has a Z-score of 3.95, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.95 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.


Inpost  (XAMS:INPST) 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.

Inpost has the Financial Strength Rank of 4.


Inpost Financial Strength Related Terms

Thank you for viewing the detailed overview of Inpost's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Inpost (XAMS:INPST) Business Description

Traded in Other Exchanges
Address
70 route d’Esch, Luxembourg, LUX, L-1470
Inpost SA is specialized in the provision of postal services. The group offers a network of parcel boxes, self-service parcel delivery, and collection points. It also offers services for the collection, routing, and delivery of mail, dispatch, and delivery of parcels, express transport, and delivery. It operates in three segments. APM segment is focused on the delivery of parcels to automated parcel machines. To-Door segment includes delivery of parcels using door-to-door couriers. International segment comprises Mondial Relay, which includes APM business and PUDO points in France, Spain, Belgium, Netherlands, and Portugal; and Other segments, which include APM business (delivery of parcels to automated parcel machines) in the United Kingdom and Italy.

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