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Zedge (FRA:34Z) Financial Strength : 8 (As of Jul. 2024)


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What is Zedge Financial Strength?

Zedge has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Zedge Inc 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.

GuruFocus does not calculate Zedge's interest coverage with the available data. Zedge's debt to revenue ratio for the quarter that ended in Jul. 2024 was 0.01. As of today, Zedge's Altman Z-Score is 3.09.


Competitive Comparison of Zedge's Financial Strength

For the Internet Content & Information subindustry, Zedge'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.


Zedge's Financial Strength Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Zedge's Financial Strength distribution charts can be found below:

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



Zedge 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:

Zedge's Interest Expense for the months ended in Jul. 2024 was €0.00 Mil. Its Operating Income for the months ended in Jul. 2024 was €-0.06 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jul. 2024 was €0.11 Mil.

Zedge's Interest Coverage for the quarter that ended in Jul. 2024 is

GuruFocus does not calculate Zedge's interest coverage with the available data.

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

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Zedge Inc has enough cash to cover all of its debt. Its financial situation is stable.

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

Zedge's Debt to Revenue Ratio for the quarter that ended in Jul. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Jul. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0.078 + 0.109) / 27.96
=0.01

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.

Zedge has a Z-score of 3.09, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.09 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.


Zedge  (FRA:34Z) 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.

Zedge has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.


Zedge Financial Strength Related Terms

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


Zedge Business Description

Traded in Other Exchanges
Address
1178 Broadway, 3rd Floor, Suite 1450, New York, NY, USA, 10001
Zedge Inc provides content distribution platforms. Its content platform enables consumers to personalize their mobile devices with free, high-quality ringtones, wallpapers, home screen app icons, widgets and notification sounds as well as paint, a generative AI wallpaper maker, GuruShots, a skill-based photo challenge game, and Emojipedia. The company also launched a Zedge app. It has two reportable segments, which are the Zedge Marketplace and GuruShots.

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