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Edelweiss Financial Services (BOM:532922) Financial Strength : 2 (As of Dec. 2024)


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What is Edelweiss Financial Services Financial Strength?

Edelweiss Financial Services 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:

Edelweiss Financial Services Ltd 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 Edelweiss Financial Services's interest coverage with the available data. Edelweiss Financial Services's debt to revenue ratio for the quarter that ended in Dec. 2024 was 0.00. Altman Z-Score does not apply to banks and insurance companies.


Edelweiss Financial Services 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:

Edelweiss Financial Services's Interest Expense for the months ended in Dec. 2024 was ₹-6,133 Mil. Its Operating Income for the months ended in Dec. 2024 was ₹0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was ₹0 Mil.

Edelweiss Financial Services's Interest Coverage for the quarter that ended in Dec. 2024 is

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

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

Edelweiss Financial Services's Debt to Revenue Ratio for the quarter that ended in Dec. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 0) / 60175.2
=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.

Altman Z-Score does not apply to banks and insurance companies.

* 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.


Edelweiss Financial Services  (BOM:532922) Financial Strength Explanation

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.

Edelweiss Financial Services 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.


Edelweiss Financial Services Financial Strength Related Terms

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Edelweiss Financial Services Business Description

Traded in Other Exchanges
Address
Edelweiss House, Off. C.S.T. Road, Kalina, Mumbai, MH, IND, 400098
Edelweiss Financial Services Ltd is mainly involved in providing investment banking services and holding company activities. The company's businesses are divided into Agency business, Capital business, Asset reconstruction business, and Insurance & Treasury business. The Agency business involves advisory and other fee-based activities, while the Capital business includes lending and investment activities. The Asset reconstruction business deals with the purchase and resolution of distressed assets, and the Insurance business includes life insurance and general insurance operations. The Treasury business represents income from trading activities. The company generates most of its revenue from the Insurance business.