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Quhuo (QH) Financial Strength : 6 (As of Dec. 2023)


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What is Quhuo Financial Strength?

Quhuo has the Financial Strength Rank of 6.

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 Quhuo's interest coverage with the available data. As of today, Quhuo's Altman Z-Score is 0.00.


Competitive Comparison of Quhuo's Financial Strength

For the Software - Application subindustry, Quhuo'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.


Quhuo's Financial Strength Distribution in the Software Industry

For the Software industry and Technology sector, Quhuo's Financial Strength distribution charts can be found below:

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



Quhuo 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:

Quhuo's Interest Expense for the months ended in Dec. 2023 was $0.0 Mil. Its Operating Income for the months ended in Dec. 2023 was $0.0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $1.3 Mil.

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

GuruFocus does not calculate Quhuo's interest coverage with the available data.

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

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

Quhuo'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
=(13.523 + 1.256) / 0
=N/A

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.

Quhuo has a Z-score of 0.00, indicating it is in Distress Zones. This implies bankrupcy 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.


Quhuo  (NAS:QH) 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.

Quhuo has the Financial Strength Rank of 6.


Quhuo Financial Strength Related Terms

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


Quhuo (QH) Business Description

Traded in Other Exchanges
N/A
Address
No. 1132 Huihe South Street, 3rd Floor, Block A, Tonghui Building, Chaoyang District, Beijing, CHN, 100020
Quhuo Ltd is a workforce operational solution platform in China. The company provides tech-enabled, end-to-end operational solutions to consumer service businesses in industries with e-commerce exposure, including food delivery, ride-hailing, housekeeping, and bike-sharing. It derives all of its revenue from the PRC. Its revenue is categorized into On-demand delivery solutions; Shared-bike maintenance solutions; Ride-hailing solutions; Housekeeping solutions and other services. The On-demand delivery solutions act as a major revenue driver for the firm.