Hertz Global Holdings 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:
Hertz Global Holdings Inc 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.
Hertz Global Holdings did not have earnings to cover the interest expense.
Hertz Global Holdings's debt to revenue ratio for the quarter that ended in Dec. 2024 was 2.26.
As of today, Hertz Global Holdings's Altman Z-Score is -0.11.
Competitive Comparison of Hertz Global Holdings's Financial Strength
For the Rental & Leasing Services subindustry, Hertz Global 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.
Hertz Global Holdings's Financial Strength Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, Hertz Global Holdings's Financial Strength distribution charts can be found below:
* The bar in red indicates where Hertz Global Holdings's Financial Strength falls into.
Hertz Global 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.
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.
Hertz Global Holdings has a Z-score of -0.11, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of -0.11 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.
Hertz Global Holdings (FRA:AZK0) 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.
Hertz Global Holdings 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.
Hertz Global Holdings Financial Strength Related Terms
Thank you for viewing the detailed overview of Hertz Global Holdings's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
Hertz Global Holdings Inc is engaged principally in the business of renting vehicles through Hertz, Dollar and Thrifty brands. The Company has identified two reportable segments: Americas RAC: Rental of vehicles, as well as sales of vehicles and value-added services, in the U.S., Canada, Latin America and the Caribbean; International RAC: Rental of vehicles, as well as sales of vehicles and value-added services, in locations other than the U.S., Canada, Latin America and the Caribbean. The Company maintain a substantial network of company-operated rental locations, a majority of which are in Europe, and have franchisees and partners that operate rental locations under brands. Geographical markets includes U.S., Europe, Pacific Asia, Middle East and Africa, Latin America.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
FRA:AZK0 has been successfully added to your