GURUFOCUS.COM » STOCK LIST » Technology » Software » Arax Holdings Corp (OTCPK:ARAT) » Definitions » Financial Strength

Arax Holdings (Arax Holdings) Financial Strength : 5 (As of Jan. 2024)


View and export this data going back to 2013. Start your Free Trial

What is Arax Holdings Financial Strength?

Arax Holdings has the Financial Strength Rank of 5.

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.

Arax Holdings has no long-term debt (1). Arax Holdings's debt to revenue ratio for the quarter that ended in Jan. 2024 was 0.00. As of today, Arax Holdings's Altman Z-Score is 273.44.

(1) Note: An indication of "no long-term debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.


Competitive Comparison of Arax Holdings's Financial Strength

For the Software - Infrastructure subindustry, Arax 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.


Arax Holdings's Financial Strength Distribution in the Software Industry

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

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



Arax 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:

Arax Holdings's Interest Expense for the months ended in Jan. 2024 was $0.00 Mil. Its Operating Income for the months ended in Jan. 2024 was $0.04 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2024 was $0.00 Mil.

Arax Holdings's Interest Coverage for the quarter that ended in Jan. 2024 is

Arax Holdings had no long-term debt (1).

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

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

Arax 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
=(0 + 0) / 0.908
=0.00

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.

Arax Holdings has a Z-score of 273.44, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 273.44 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.


Arax Holdings  (OTCPK:ARAT) 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.

Arax Holdings has the Financial Strength Rank of 5.


Arax Holdings Financial Strength Related Terms

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


Arax Holdings (Arax Holdings) Business Description

Traded in Other Exchanges
N/A
Address
30 North Gould Street, Sheridan, WY, USA, 82801
Arax Holdings Corp invests in TechFin and blockchain-based software solutions companies. The primary focus of Arax is to fuse decentralized solutions with financial service providers within multiple markets and communication networks to bring blockchain to everyday life.

Arax Holdings (Arax Holdings) Headlines

No Headlines