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New Century AIM VCT 2 (LSE:NCA2) Financial Strength : 8 (As of Dec. 2023)


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What is New Century AIM VCT 2 Financial Strength?

New Century AIM VCT 2 has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

New Century AIM VCT 2 PLC 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 New Century AIM VCT 2's interest coverage with the available data. New Century AIM VCT 2's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.00. Altman Z-Score does not apply to banks and insurance companies.


New Century AIM VCT 2 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:

New Century AIM VCT 2's Interest Expense for the months ended in Dec. 2023 was £0.00 Mil. Its Operating Income for the months ended in Dec. 2023 was £0.00 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was £0.00 Mil.

New Century AIM VCT 2's Interest Coverage for the quarter that ended in Dec. 2023 is

New Century AIM VCT 2 had no long-term debt (1).

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

Good Sign:

New Century AIM VCT 2 PLC has no debt.

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

New Century AIM VCT 2's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 0) / 0.374
=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.


New Century AIM VCT 2  (LSE:NCA2) 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.

New Century AIM VCT 2 has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.


New Century AIM VCT 2 Financial Strength Related Terms

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New Century AIM VCT 2 (LSE:NCA2) Business Description

Traded in Other Exchanges
N/A
Address
50 Mark Lane, 4th Floor, London, GBR, EC3R 7QR
Website
New Century AIM VCT 2 PLC is a venture capital trust engaged in long-term equity and loan investments in UK Listed, AIM traded, and unquoted companies in the United Kingdom. Its principal investment objective is to achieve long-term capital growth through investment in a diversified portfolio of qualifying companies quoted on AIM. The Company invests its funds in companies traded on AIM, which entail a higher degree of risk than investments in large listed companies.