What is Green Hydrogen Systems AS Financial Strength?
Green Hydrogen Systems AS 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:
Green Hydrogen Systems AS 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 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.
Green Hydrogen Systems AS did not have earnings to cover the interest expense.
Green Hydrogen Systems AS's debt to revenue ratio for the quarter that ended in Jun. 2024 was 19.31.
As of today, Green Hydrogen Systems AS's Altman Z-Score is -1.40.
Competitive Comparison of Green Hydrogen Systems AS's Financial Strength
For the Utilities - Renewable subindustry, Green Hydrogen Systems AS'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.
Green Hydrogen Systems AS's Financial Strength Distribution in the Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Green Hydrogen Systems AS's Financial Strength distribution charts can be found below:
* The bar in red indicates where Green Hydrogen Systems AS's Financial Strength falls into.
Green Hydrogen Systems AS 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.
Green Hydrogen Systems AS has a Z-score of -1.40, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of -1.4 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.
Green Hydrogen Systems AS (OCSE:GREENH) 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.
Green Hydrogen Systems AS 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.
Green Hydrogen Systems AS Financial Strength Related Terms
Thank you for viewing the detailed overview of Green Hydrogen Systems AS's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
Green Hydrogen Systems AS is a provider of standardized and modular electrolyzers for the production of green hydrogen solely based on renewable energy. The firm caters to industries that establish on-site green hydrogen production for different purposes as well as energy and transport companies being at the forefront of the development of Power-to-X applications and transition towards emission-free fuel. It generates revenue from the sale and installation of complete alkaline electrolysis solutions as well as the service of the installed systems. The company derives its revenue from Denmark, Norway, Sweden, and other countries.
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