Atlas Lithium has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Atlas Lithium Corp 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 rated on a scale of 1 to 10 and 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.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
GuruFocus does not calculate Atlas Lithium's interest coverage with the available data.
Atlas Lithium's debt to revenue ratio for the quarter that ended in Dec. 2024 was 21.01.
As of today, Atlas Lithium's Altman Z-Score is -4.45.
Competitive Comparison of Atlas Lithium's Financial Strength
For the Other Industrial Metals & Mining subindustry, Atlas Lithium'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.
Atlas Lithium's Financial Strength Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Atlas Lithium's Financial Strength distribution charts can be found below:
* The bar in red indicates where Atlas Lithium's Financial Strength falls into.
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.
Atlas Lithium has a Z-score of -4.45, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of -4.45 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.
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Atlas Lithium has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Atlas Lithium Financial Strength Related Terms
Thank you for viewing the detailed overview of Atlas Lithium's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
Atlas Lithium Corp is a mineral exploration and development company with lithium projects and exploration properties in other critical and battery minerals, including nickel, rare earth, graphite, and titanium, to power the increased demand for electrification. Its focus is on developing its hard-rock lithium project Minas Gerais Lithium Project located in Minas Gerais State in Brazil. The company intends to produce and sell lithium concentrate, a key ingredient for the battery supply chain. It intends to mine and then process its lithium-containing ore to produce lithium concentrate (also known as spodumene concentrate), a key ingredient for the battery supply chain.
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