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KRLTF (Karnalyte Resources) Financial Strength : 7 (As of Dec. 2024)


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What is Karnalyte Resources Financial Strength?

Karnalyte Resources has the Financial Strength Rank of 7.

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.

Karnalyte Resources did not have earnings to cover the interest expense. As of today, Karnalyte Resources's Altman Z-Score is 0.00.


Competitive Comparison of Karnalyte Resources's Financial Strength

For the Agricultural Inputs subindustry, Karnalyte Resources'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.


Karnalyte Resources's Financial Strength Distribution in the Agriculture Industry

For the Agriculture industry and Basic Materials sector, Karnalyte Resources's Financial Strength distribution charts can be found below:

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


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Karnalyte Resources 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:

Karnalyte Resources's Interest Expense for the months ended in Dec. 2024 was $-0.01 Mil. Its Operating Income for the months ended in Dec. 2024 was $-0.24 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was $0.00 Mil.

Karnalyte Resources's Interest Coverage for the quarter that ended in Dec. 2024 is

Karnalyte Resources did not have earnings to cover the interest expense.

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

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

Karnalyte Resources'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) / 0
=N/A

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.

Karnalyte Resources has a Z-score of 0.00, indicating it is in Distress Zones. This implies bankrupcy 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.


Karnalyte Resources  (OTCPK:KRLTF) 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.

Karnalyte Resources has the Financial Strength Rank of 7.


Karnalyte Resources Financial Strength Related Terms

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


Karnalyte Resources Business Description

Traded in Other Exchanges
Address
409 3rd Avenue South, Suite 1201, Saskatoon, SK, CAN, S7K 5R5
Karnalyte Resources Inc is a development stage company is engaged in exploration and development of its property and planned construction of a production facility and development of a potash mine. The property is situated in Saskatchewan, south of Wynyard and contains a dominant zone of potash and magnesium minerals.

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