Lifezone Metals 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:
Lifezone Metals 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.
Lifezone Metals did not have earnings to cover the interest expense.
Lifezone Metals's debt to revenue ratio for the quarter that ended in Jun. 2024 was 1,624.78.
As of today, Lifezone Metals's Altman Z-Score is -5.58.
Competitive Comparison of Lifezone Metals's Financial Strength
For the Other Industrial Metals & Mining subindustry, Lifezone Metals'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.
Lifezone Metals's Financial Strength Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Lifezone Metals's Financial Strength distribution charts can be found below:
* The bar in red indicates where Lifezone Metals's Financial Strength falls into.
Lifezone Metals 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.
Lifezone Metals has a Z-score of -5.58, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of -5.58 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.
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.
Lifezone Metals 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.
Lifezone Metals Financial Strength Related Terms
Thank you for viewing the detailed overview of Lifezone Metals's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
Lifezone Metals Ltd seeks to support the clean energy transition through the licensing of Hydromet Technology as an alternative to smelting and metals refining and to become an emerging supplier of responsibly sourced, lower-carbon and lower-sulfur dioxide emission metals to the battery, EV, and hydrogen markets modern pre-development exploration-stage metals company. Its business comprises two segments: Metals extraction and refining for developing and operating a vertically integrated base metal operation in the northwest region of Tanzania and Intellectual property licensing comprises patents residing with and managed by the subsidiary.
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