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Jushi Holdings (XCNQ:JUSH) Financial Strength : 3 (As of Mar. 2024)


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What is Jushi Holdings Financial Strength?

Jushi Holdings 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:

Jushi Holdings Inc 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.

Jushi Holdings's Interest Coverage for the quarter that ended in Mar. 2024 was 0.43. Jushi Holdings's debt to revenue ratio for the quarter that ended in Mar. 2024 was 1.04. As of today, Jushi Holdings's Altman Z-Score is -1.10.


Competitive Comparison of Jushi Holdings's Financial Strength

For the Drug Manufacturers - Specialty & Generic subindustry, Jushi 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.


Jushi Holdings's Financial Strength Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Jushi Holdings's Financial Strength distribution charts can be found below:

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



Jushi Holdings 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:

Jushi Holdings's Interest Expense for the months ended in Mar. 2024 was C$-13.1 Mil. Its Operating Income for the months ended in Mar. 2024 was C$5.6 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was C$242.9 Mil.

Jushi Holdings's Interest Coverage for the quarter that ended in Mar. 2024 is

Interest Coverage=-1*Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*5.575/-13.06
=0.43

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

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Jushi Holdings Incs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

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

Jushi Holdings'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
=(126.839 + 242.921) / 354.42
=1.04

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.

Jushi Holdings has a Z-score of -1.10, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of -1.1 is in distress zone. This implies bankruptcy 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.


Jushi Holdings  (XCNQ:JUSH) 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.

Jushi Holdings 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.


Jushi Holdings Financial Strength Related Terms

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Jushi Holdings (XCNQ:JUSH) Business Description

Traded in Other Exchanges
Address
301 Yamato Road, Suite 3250, Boca Raton, FL, USA, 33431
Jushi Holdings Inc is a vertically integrated multi-state cannabis and hemp operator across the United States. The company operates a diverse portfolio of branded cannabis and hemp-derived assets, built upon opportunistic acquisitions, distressed deals and competitive applications. Operating under the Jushi umbrella is the BEYOND / HELLO retail brand of cannabis dispensaries, hemp-based CBD brand, Nira, including its brands, The Lab: Concentrates and The Bank: Flower + Genetics, as well as its precision formulated line of medical cannabis products Nira Plus. Jushi strives to maximize shareholder value while delivering high premium products across all levels of the cannabis and hemp ecosystem.

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