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Eolus AB (publ) (OSTO:EOLU B) Financial Strength : 7 (As of Mar. 2025)


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What is Eolus AB (publ) Financial Strength?

Eolus AB (publ) has the Financial Strength Rank of 7.

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.

Eolus AB (publ)'s Interest Coverage for the quarter that ended in Mar. 2025 was 4.71. Eolus AB (publ)'s debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.07. As of today, Eolus AB (publ)'s Altman Z-Score is 3.97.


Competitive Comparison of Eolus AB (publ)'s Financial Strength

For the Utilities - Renewable subindustry, Eolus AB (publ)'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.


Eolus AB (publ)'s Financial Strength Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Eolus AB (publ)'s Financial Strength distribution charts can be found below:

* The bar in red indicates where Eolus AB (publ)'s Financial Strength falls into.


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Eolus AB (publ) 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:

Eolus AB (publ)'s Interest Expense for the months ended in Mar. 2025 was kr-35 Mil. Its Operating Income for the months ended in Mar. 2025 was kr165 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was kr568 Mil.

Eolus AB (publ)'s Interest Coverage for the quarter that ended in Mar. 2025 is

Interest Coverage=-1*Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*165/-35
=4.71

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

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

Eolus AB (publ)'s Debt to Revenue Ratio for the quarter that ended in Mar. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(8 + 568) / 7900
=0.07

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.

Eolus AB (publ) has a Z-score of 3.97, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.97 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.


Eolus AB (publ)  (OSTO:EOLU B) 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.

Eolus AB (publ) has the Financial Strength Rank of 7.


Eolus AB (publ) Financial Strength Related Terms

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Eolus AB (publ) Business Description

Traded in Other Exchanges
Address
Tredje Avenyen 3, Box 95, Hassleholm, SWE, 281 21
Eolus Vind AB is a wind power contractor in Sweden. The company is engaged in the development and construction of wind turbines for divestment or proprietary management. It is also engaged in project development activity, which includes pre-study, project development, establishment, and sale of wind power facilities. Its project portfolio includes onshore wind, offshore wind, solar power, storage, and sea-based wind. The majority of its revenue comes from the project planning segment.

Eolus AB (publ) Headlines

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