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LeadDesk Oyj (OHEL:LEADD) Financial Strength : 4 (As of Dec. 2024)


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What is LeadDesk Oyj Financial Strength?

LeadDesk Oyj has the Financial Strength Rank of 4.

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.

LeadDesk Oyj's Interest Coverage for the quarter that ended in Dec. 2024 was 0.09. LeadDesk Oyj's debt to revenue ratio for the quarter that ended in Dec. 2024 was 0.20. As of today, LeadDesk Oyj's Altman Z-Score is 2.15.


Competitive Comparison of LeadDesk Oyj's Financial Strength

For the Software - Application subindustry, LeadDesk Oyj'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.


LeadDesk Oyj's Financial Strength Distribution in the Software Industry

For the Software industry and Technology sector, LeadDesk Oyj's Financial Strength distribution charts can be found below:

* The bar in red indicates where LeadDesk Oyj's Financial Strength falls into.


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LeadDesk Oyj 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:

LeadDesk Oyj's Interest Expense for the months ended in Dec. 2024 was €-0.37 Mil. Its Operating Income for the months ended in Dec. 2024 was €0.03 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was €4.57 Mil.

LeadDesk Oyj's Interest Coverage for the quarter that ended in Dec. 2024 is

Interest Coverage=-1*Operating Income (Q: Dec. 2024 )/Interest Expense (Q: Dec. 2024 )
=-1*0.032/-0.373
=0.09

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

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

LeadDesk Oyj'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
=(1.988 + 4.568) / 32.244
=0.20

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.

LeadDesk Oyj has a Z-score of 2.15, indicating it is in Grey Zones. This implies that LeadDesk Oyj is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.15 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* 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.


LeadDesk Oyj  (OHEL:LEADD) 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.

LeadDesk Oyj has the Financial Strength Rank of 4.


LeadDesk Oyj Financial Strength Related Terms

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LeadDesk Oyj Business Description

Traded in Other Exchanges
N/A
Address
Hameentie 19, Helsinki, FIN, 00500
LeadDesk Oyj offers cloud service for sales and customer-service needs, such as contact centers. The company's major customer industries includes media, security services, energy, telecommunications, financial services, and market research.

LeadDesk Oyj Headlines

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