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Nordex SE (XTER:NDX1) Financial Strength : 5 (As of Dec. 2023)


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What is Nordex SE Financial Strength?

Nordex SE 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.

Nordex SE's Interest Coverage for the quarter that ended in Dec. 2023 was 0.48. Nordex SE's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.06. As of today, Nordex SE's Altman Z-Score is 1.34.


Competitive Comparison of Nordex SE's Financial Strength

For the Specialty Industrial Machinery subindustry, Nordex SE'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.


Nordex SE's Financial Strength Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Nordex SE's Financial Strength distribution charts can be found below:

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



Nordex SE 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:

Nordex SE's Interest Expense for the months ended in Dec. 2023 was €-30 Mil. Its Operating Income for the months ended in Dec. 2023 was €14 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was €398 Mil.

Nordex SE'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*14.303/-29.889
=0.48

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

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

Nordex SE'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
=(77.57 + 397.501) / 8048.956
=0.06

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.

Nordex SE has a Z-score of 1.34, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.34 is in distress zone. This implies bankruptcy possibility in the next two years.

* 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.


Nordex SE  (XTER:NDX1) 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.

Nordex SE has the Financial Strength Rank of 5.


Nordex SE Financial Strength Related Terms

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


Nordex SE (XTER:NDX1) Business Description

Address
Langenhorner Chaussee 600, Hamburg, DEU, 22419
Nordex SE is a German company that develops, manufactures, services, and markets wind power systems. The company manages its activities via Projects and Service segments. The projects segment includes all activities associated with the development, production, assembly and commissioning of wind turbines and project development business. The services segment encompasses services and projects for existing turbines after their handover to customers. In particular, this includes technical services such as maintenance and remote monitoring of wind farms as well as repair and technical enhancements for existing turbines. The majority of the sales are done through the projects segment.
Executives
José Luis Blanco Diéguez Board of Directors
Patxi Landa Esparza Board of Directors

Nordex SE (XTER:NDX1) Headlines

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