What is Fusion Micro Finance Financial Strength?
Fusion Micro Finance has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Fusion Micro Finance Ltd 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.
GuruFocus does not calculate Fusion Micro Finance's interest coverage with the available data.
Fusion Micro Finance's debt to revenue ratio for the quarter that ended in Mar. 2024 was 3.68.
As of today, Fusion Micro Finance's Altman Z-Score is 1.85.
Competitive Comparison of Fusion Micro Finance's Financial Strength
For the Credit Services subindustry, Fusion Micro Finance'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.
Fusion Micro Finance's Financial Strength Distribution in the Credit Services Industry
For the Credit Services industry and Financial Services sector, Fusion Micro Finance's Financial Strength distribution charts can be found below:
* The bar in red indicates where Fusion Micro Finance's Financial Strength falls into.
Fusion Micro Finance 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:
Fusion Micro Finance's Interest Expense for the
months ended in Mar. 2024 was ₹0 Mil. Its Operating Income for the
months ended in Mar. 2024 was ₹2,011 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ₹86,159 Mil.
Fusion Micro Finance's Interest Coverage for the quarter that ended in Mar. 2024 is
The higher the ratio, the stronger the company's financial strength is.
2. Debt to revenue ratio. The lower, the better.
Fusion Micro Finance's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is
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.
Fusion Micro Finance has a Z-score of 1.85, indicating it is in Grey Zones. This implies that Fusion Micro Finance is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.
Warning Sign:
Altman Z-score of 1.85 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.
* 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.
Fusion Micro Finance (NSE:FUSION) Business Description
Traded in Other Exchanges
Address
Plot No. 86, Institutional Sector - 32, Gurugram, HR, IND, 122001
Fusion Micro Finance Ltd is engaged in micro finance lending activities, providing financial services to poor women in India who are organized as Joint Liability Group (JLGs). The company provides small value collateral free loans. Apart from micro finance lending, the company also has lending to MSME enterprises. It uses its distribution channel to provide other financial products and services to the members relate to providing of loans to the members for the purchase of certain productivity enhancing products such as mobile handsets, bicycle.
Fusion Micro Finance (NSE:FUSION) Headlines
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