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Iris Energy (Iris Energy) Financial Strength : 8 (As of Dec. 2023)


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What is Iris Energy Financial Strength?

Iris Energy has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Iris Energy Ltd shows strong financial strength.

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.

Iris Energy did not have earnings to cover the interest expense. Iris Energy's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.01. As of today, Iris Energy's Altman Z-Score is 8.53.


Competitive Comparison of Iris Energy's Financial Strength

For the Capital Markets subindustry, Iris Energy'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.


Iris Energy's Financial Strength Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Iris Energy's Financial Strength distribution charts can be found below:

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



Iris Energy 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:

Iris Energy's Interest Expense for the months ended in Dec. 2023 was $-0.03 Mil. Its Operating Income for the months ended in Dec. 2023 was $-2.70 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $1.15 Mil.

Iris Energy's Interest Coverage for the quarter that ended in Dec. 2023 is

Iris Energy 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.

Iris Energy'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
=(0.209 + 1.15) / 168.188
=0.01

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.

Iris Energy has a Z-score of 8.53, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 8.53 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.


Iris Energy  (NAS:IREN) 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.

Iris Energy has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.


Iris Energy Financial Strength Related Terms

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Iris Energy (Iris Energy) Business Description

Traded in Other Exchanges
N/A
Address
44 Market Street, Level 12, Sydney, NSW, AUS, 2000
Iris Energy Ltd is a Bitcoin mining company. It builds, owns, and operates data centers and electrical infrastructure for the mining of Bitcoin powered by renewable energy. The company's mining operations generate revenue by earning Bitcoin through a combination of block rewards and transaction fees from the operation of its specialized computers called Application-specific Integrated Circuits and exchanging these Bitcoin for currencies such as USD or CAD on a daily basis.