What is Northern Technologies International Financial Strength?
Northern Technologies International has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
Good Sign:
Northern Technologies International Corp 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.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
Northern Technologies International did not have earnings to cover the interest expense.
Northern Technologies International's debt to revenue ratio for the quarter that ended in Feb. 2024 was 0.05.
As of today, Northern Technologies International's Altman Z-Score is 8.79.
Competitive Comparison of Northern Technologies International's Financial Strength
For the Specialty Chemicals subindustry, Northern Technologies International'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.
Northern Technologies International's Financial Strength Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Northern Technologies International's Financial Strength distribution charts can be found below:
* The bar in red indicates where Northern Technologies International's Financial Strength falls into.
Northern Technologies International 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.
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:
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.
Northern Technologies International has a Z-score of 8.79, indicating it is in Safe Zones. This implies the Z-Score is strong.
Good Sign:
Altman Z-score of 8.79 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.
Northern Technologies International (NAS:NTIC) 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.
Northern Technologies International has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
Northern Technologies International Financial Strength Related Terms
Thank you for viewing the detailed overview of Northern Technologies International's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
Northern Technologies International (Northern Technologies International) Business Description
Northern Technologies International Corp, or NTIC is a United States-based firm that develops and markets environmentally beneficial products and services world-wide either directly or through a network of joint ventures, distributors, and agents. It operates through two segments which include ZERUST products and services and Nature-Tec products. Its main business is providing corrosion prevention solutions that are marketed under the ZERUST brand. The company also sells a portfolio of bio-based and biodegradable (compostable) polymer resin compounds and finished products marketed under the Nature-Tec brand. The ZERUST brand generates a vast majority of the revenue for the company.
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