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Yubico AB (OSTO:YUBICO) Financial Strength : 8 (As of Mar. 2024)


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What is Yubico AB Financial Strength?

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

Good Sign:

Yubico AB 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.

GuruFocus does not calculate Yubico AB's interest coverage with the available data. Yubico AB's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.03. As of today, Yubico AB's Altman Z-Score is 26.03.


Competitive Comparison of Yubico AB's Financial Strength

For the Software - Infrastructure subindustry, Yubico AB'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.


Yubico AB's Financial Strength Distribution in the Software Industry

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

* The bar in red indicates where Yubico AB's Financial Strength falls into.



Yubico 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:

Yubico AB's Interest Expense for the months ended in Mar. 2024 was kr0 Mil. Its Operating Income for the months ended in Mar. 2024 was kr77 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was kr39 Mil.

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

GuruFocus does not calculate Yubico AB's interest coverage with the available data.

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

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Yubico AB has enough cash to cover all of its debt. Its financial situation is stable.

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

Yubico 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
=(27.3 + 39) / 2017.6
=0.03

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.

Yubico AB has a Z-score of 26.03, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 26.03 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.


Yubico AB  (OSTO:YUBICO) 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.

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


Yubico AB Financial Strength Related Terms

Thank you for viewing the detailed overview of Yubico AB's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Yubico AB (OSTO:YUBICO) Business Description

Traded in Other Exchanges
Address
Kungsgatan 44, Stockholm, SWE, 111 35
Yubico AB is a leader in setting global standards for secure access to computers, mobile devices, servers, browsers, and internet accounts. Yubico is a creator and core contributor to the FIDO2, WebAuthn, and FIDO Universal 2nd Factor (U2F) open authentication standards, and is a pioneer in delivering modern, hardware-based passkey authentication security at scale to customers in over 160 countries. It is a global cybersecurity company and inventor of the YubiKey, which offers the gold standard for phishing-resistant multi-factor authentication (MFA).

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