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GPO Plus (GPO Plus) Financial Strength : 2 (As of Jan. 2024)


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What is GPO Plus Financial Strength?

GPO Plus has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

GPO Plus Inc displays poor financial strength. Usually, this is caused by too much debt for the company.

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.

GPO Plus did not have earnings to cover the interest expense. GPO Plus's debt to revenue ratio for the quarter that ended in Jan. 2024 was 0.64. As of today, GPO Plus's Altman Z-Score is -52.41.


Competitive Comparison of GPO Plus's Financial Strength

For the Specialty Business Services subindustry, GPO Plus'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.


GPO Plus's Financial Strength Distribution in the Business Services Industry

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

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



GPO Plus 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:

GPO Plus's Interest Expense for the months ended in Jan. 2024 was $-0.15 Mil. Its Operating Income for the months ended in Jan. 2024 was $-0.75 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2024 was $0.16 Mil.

GPO Plus's Interest Coverage for the quarter that ended in Jan. 2024 is

GPO Plus did not have earnings to cover the interest expense.

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

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

GPO Plus's Debt to Revenue Ratio for the quarter that ended in Jan. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Jan. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(2.649 + 0.157) / 4.36
=0.64

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.

GPO Plus has a Z-score of -52.41, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of -52.41 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.


GPO Plus  (OTCPK:GPOX) 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.

GPO Plus has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


GPO Plus Financial Strength Related Terms

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GPO Plus (GPO Plus) Business Description

Traded in Other Exchanges
N/A
Address
3571 E. Sunset Road, Suite 300, Las Vegas, NV, USA, 89120
GPO Plus Inc is a fully reporting global holding company of industry-specific Group Purchasing Organizations (GPO). The company's main holdings are HealthGPO, a Group Purchasing Organization for the Healthcare industry, and cbdGPO, a Group Purchasing Organization for the CBD and Hemp industry. In addition, GPOPlus+ offers professional services through GPOPRO Services. The Company's business is organized around four key areas which are products (developing and manufacturing), distribution (getting our products to customers), marketing (promoting our products), and sales (selling our products to consumers and retailers).

GPO Plus (GPO Plus) Headlines