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One Stop Systems (STU:5MU) Financial Strength : 7 (As of Mar. 2024)


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What is One Stop Systems Financial Strength?

One Stop Systems has the Financial Strength Rank of 7.

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.

One Stop Systems did not have earnings to cover the interest expense. One Stop Systems's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.07. As of today, One Stop Systems's Altman Z-Score is 4.04.


Competitive Comparison of One Stop Systems's Financial Strength

For the Computer Hardware subindustry, One Stop Systems'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.


One Stop Systems's Financial Strength Distribution in the Hardware Industry

For the Hardware industry and Technology sector, One Stop Systems's Financial Strength distribution charts can be found below:

* The bar in red indicates where One Stop Systems's Financial Strength falls into.



One Stop Systems 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:

One Stop Systems's Interest Expense for the months ended in Mar. 2024 was €-0.03 Mil. Its Operating Income for the months ended in Mar. 2024 was €-1.16 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was €1.56 Mil.

One Stop Systems's Interest Coverage for the quarter that ended in Mar. 2024 is

One Stop Systems 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.

One Stop Systems's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1.629 + 1.558) / 46.56
=0.07

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.

One Stop Systems has a Z-score of 4.04, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.04 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.


One Stop Systems  (STU:5MU) 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.

One Stop Systems has the Financial Strength Rank of 7.


One Stop Systems Financial Strength Related Terms

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One Stop Systems (STU:5MU) Business Description

Traded in Other Exchanges
Address
2235 Enterprise Street, Suite 110, Escondido, CA, USA, 92029
One Stop Systems Inc designs and manufactures innovative Artificial intelligence (AI) Transportable edge computing modules and systems, including ruggedized servers, compute accelerators, expansion systems, flash storage arrays and Ion Accelerator SAN, NAS and data recording software for AI workflows. These products are used for AI data set capture, training, and large-scale inference in the defense, oil and gas, mining, autonomous vehicles and rugged entertainment applications. The company enables AI on the Fly by bringing AI datacenter performance to the edge, especially on mobile platforms, and by addressing the entire AI workflow, from high-speed data acquisition to deep learning, training and inference. Its products are available directly or through global distributors.

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