Traction AB (OSTO:TRAC B) Financial Strength : 7 (As of Mar. 2024)

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What is Traction AB Financial Strength?

Traction AB has the Financial Strength Rank of 7.

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.

GuruFocus does not calculate Traction AB's interest coverage with the available data. Traction AB's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.00. Altman Z-Score does not apply to banks and insurance companies.

Traction AB 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:

Traction AB's Interest Expense for the months ended in Mar. 2024 was kr0.0 Mil. Its Operating Income for the months ended in Mar. 2024 was kr0.0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was kr0.0 Mil.

Traction AB's Interest Coverage for the quarter that ended in Mar. 2024 is

Traction AB had no long-term debt ⁽¹⁾.

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

Good Sign:

Traction AB has no debt.

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

Traction AB's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is

Debt to Revenue Ratio	=	Total Debt (Q: Mar. 2024 )			/	Revenue
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Revenue
	=	(0	+	0)	/	523.6
	=	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.

Altman Z-Score does not apply to banks and insurance companies.

* 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.

Traction AB (OSTO:TRAC B) 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.

Traction AB has the Financial Strength Rank of 7.

Traction AB Financial Strength Related Terms

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Traction AB (OSTO:TRAC B) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

N/A

Address

Box 3314, Stockholm, SWE, S-103 66

Website

http://www.traction.se

Traction AB is a Sweden-based investment company engaged in the long-term business development of wholly and partially owned companies. Its core objective is to realize a good return on capital. Its activities are divided into three business divisions: Customer relationships, providing customer-focused business models; Capital flows, offering cost control; and Risk management, including sharing and reducing risk factors. Traction AB invests in listed active holdings, such as BE Group, Drillcon, Duroc, Hifab Group, Nordic Camping and Resort, OEM International, PartnerTech, Softronic, and SwitchCore, as well as in unlisted active entities, including Banking Automation, Modular Streams, Recco Holding, and Silicon.