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Nitiraj Engineers (NSE:NITIRAJ) Financial Strength : 8 (As of Dec. 2023)


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What is Nitiraj Engineers Financial Strength?

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

Good Sign:

Nitiraj Engineers Ltd 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.

Nitiraj Engineers's Interest Coverage for the quarter that ended in Dec. 2023 was 194.42. Nitiraj Engineers's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.00. As of today, Nitiraj Engineers's Altman Z-Score is 18.59.


Competitive Comparison of Nitiraj Engineers's Financial Strength

For the Scientific & Technical Instruments subindustry, Nitiraj Engineers'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.


Nitiraj Engineers's Financial Strength Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Nitiraj Engineers's Financial Strength distribution charts can be found below:

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



Nitiraj Engineers 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:

Nitiraj Engineers's Interest Expense for the months ended in Dec. 2023 was ₹-0.1 Mil. Its Operating Income for the months ended in Dec. 2023 was ₹27.0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was ₹0.0 Mil.

Nitiraj Engineers's Interest Coverage for the quarter that ended in Dec. 2023 is

Interest Coverage=-1*Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*27.025/-0.139
=194.42

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

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

Nitiraj Engineers'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) / 809.856
=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.

Nitiraj Engineers has a Z-score of 18.59, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 18.59 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.


Nitiraj Engineers  (NSE:NITIRAJ) 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.

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


Nitiraj Engineers Financial Strength Related Terms

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Nitiraj Engineers (NSE:NITIRAJ) Business Description

Traded in Other Exchanges
N/A
Address
Plot NO J25, J26,MIDC Awadhan,, Dhule, MH, IND, 424006
Nitiraj Engineers Ltd offers measure and counting devices in India. It operates in five broad segments i.e., Electronic Weighing Scales and Systems, Electronic Currency Counting Machines, and Digital Fare Meters, Home and Hotel Automation, and Mechanical Scales. The company generates maximum revenue from the Electronic Weighing Scales and Systems segment. Its diverse product portfolio caters to various sectors such as industrial, commercial, jewellery, healthcare, household, automobile, and home and hotel. Geographically it derives a majority of its revenue from India.

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