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Red Cat Holdings has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
Good Sign:
Red Cat Holdings Inc 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.Red Cat Holdings did not have earnings to cover the interest expense. Red Cat Holdings's debt to revenue ratio for the quarter that ended in Jan. 2024 was 0.06. As of today, Red Cat Holdings's Altman Z-Score is 5.61.
For the Computer Hardware subindustry, Red Cat Holdings'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.
For the Hardware industry and Technology sector, Red Cat Holdings's Financial Strength distribution charts can be found below:
* The bar in red indicates where Red Cat Holdings's Financial Strength falls into.
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:
Red Cat Holdings's Interest Expense for the months ended in Jan. 2024 was $-0.02 Mil. Its Operating Income for the months ended in Jan. 2024 was $-4.45 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2024 was $0.20 Mil.
Red Cat Holdings's Interest Coverage for the quarter that ended in Jan. 2024 is
Red Cat Holdings 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.
Red Cat Holdings'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 | |
= | (1.197 | + | 0.195) | / | 23.392 | |
= | 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.
Red Cat Holdings has a Z-score of 5.61, indicating it is in Safe Zones. This implies the Z-Score is strong.
Good Sign:
Altman Z-score of 5.61 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.
Red Cat Holdings (NAS:RCAT) 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.
Red Cat Holdings has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
Thank you for viewing the detailed overview of Red Cat Holdings's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
Allan Thomas Evans | officer: CEO of Fat Shark Holdings, Ltd | 1400 VILLAGE SQ BLVD, UNIT #3-80448, TALLAHASSEE FL 32312 |
Nick Jr Liuzza | director | 79 WAPPING ROAD, PORTSMOUTH RI 02871 |
Jeffrey M Thompson | director, 10 percent owner, officer: President and CEO | 5 SHELL CASTLE CLUB, PALMAS DEL MAR PR 00791 |
Joseph David Freedman | director | 945 SOUTHSIDE PLACE, NASHVILLE TN 37203 |
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Christopher R. Moe | director | 36 PROSPECT FARM ROAD, PORTSMOUTH RI 02871 |
George Michael Matus | officer: CEO of Teal Drones subsidiary | 5200 S HIGHLAND DRIVE, SUITE 201, HOLLADAY 2J 84117 |
Gregory Ralph French | 10 percent owner | 280 RALEIGH QUAY, WEST BAY E9 KY1-1300 |
Brains Riding In Tanks, Llc | 10 percent owner | 8861 DAY AVE SW, NAVARRE OH 44662 |
Joseph P Hernon | officer: CFO, Secretary and Treasurer | 1607 PONCE DE LEON AVENUE, SUITE 407, SAN JUAN PR 00909 |
Patrick Thomas Mitchell | director | 10615 JEFFERSON HWY, BATON ROUGE LA 70809 |
Gary R Smith | director | 2401 PGA BLVD, SUITE 272, PALM BEACH GARDENS FL 33410 |
Lou Iii Werner | director | 6900 E. CAMELBACK ROAD, SUITE 1020, SCOTTSDALE AZ 85251 |
Jessica L Smith | officer: Interim CFO | 8399 E. INDIAN SCHOOL RD., SUITE 202, SCOTTSDALE AZ 85251 |
John M. Wise | director, 10 percent owner, officer: President | 7690 E. CAMELBACK ROAD, SUITE 511, SCOTTSDALE AZ 85251 |
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