RECT (Rectitude Holdings) Financial Strength: 8 (As of Mar. 2026) — 14% Above Median

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RECT Rectitude Holdings Ltd RECT
21 GF Score
Price $1.28
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What is Rectitude Holdings Financial Strength?

Rectitude Holdings RECT +4.49% 21 Financial Strength is 8 as of Mar. 2026, which is 14% above its 10-year median of 7.00. GuruFocus rates RECT with a GF Score™ of 21/100.

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

Good Sign:

Rectitude Holdings Ltd shows strong financial strength.

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.

Rectitude Holdings's Interest Coverage for the quarter that ended in Mar. 2026 was 19.15. Rectitude Holdings's debt to revenue ratio for the quarter that ended in Mar. 2026 was 0.17. As of today, Rectitude Holdings's Altman Z-Score is 3.07.


Rectitude Holdings  (NAS:RECT) 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.

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


Rectitude Holdings Financial Strength Related Terms


RECT vs TLF, BWTL, AETN: Financial Strength Comparison

For the Specialty Retail subindustry, Rectitude Holdings'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.


Rectitude Holdings Financial Strength vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Rectitude Holdings's Financial Strength distribution charts can be found below:

* The bar in red indicates where Rectitude Holdings's Financial Strength falls into.


RECT
21GF Score
Rectitude Holdings Ltd RECT
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
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Rectitude Holdings 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:

Rectitude Holdings's Interest Expense for the months ended in Mar. 2026 was $-0.07 Mil. Its Operating Income for the months ended in Mar. 2026 was $1.26 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2026 was $5.44 Mil.

Rectitude Holdings's Interest Coverage for the quarter that ended in Mar. 2026 is

Interest Coverage=-1*Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*1.264/-0.066
=19.15

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

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

Rectitude Holdings's Debt to Revenue Ratio for the quarter that ended in Mar. 2026 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2026 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1.725 + 5.439) / 41.868
=0.17

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.

Rectitude Holdings has a Z-score of 3.07, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.07 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.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 8 mean?
Rectitude Holdings (RECT) has a Financial Strength of 8 as of Mar. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Rectitude Holdings and its competitors. This is 14% above median its historical median of 7.00. Over the past decade, Rectitude Holdings' Financial Strength has ranged from 6.00 to 8.00.
Is Rectitude Holdings' Financial Strength too high?
Rectitude Holdings' current Financial Strength of 8 is 14% above median its 10-year median of 7.00. Over the past 10 years, this metric has ranged from a low of 6.00 to a high of 8.00. Overall, Rectitude Holdings has a GF Score™ of 21/100, reflecting its overall financial health beyond just this single metric.
How does Rectitude Holdings' Financial Strength compare to TLF and BWTL?
Rectitude Holdings' Financial Strength of 8 can be compared against companies in the Retail - Cyclical industry. Historically, Rectitude Holdings' own Financial Strength has ranged from 6.00 to 8.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Retail - Cyclical company?
A good Financial Strength depends on the Retail - Cyclical industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Rectitude Holdings and its competitors. Rectitude Holdings's current Financial Strength is 8, which is 14% above median its own 10-year median of 7.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rectitude Holdings stock overvalued right now?
Rectitude Holdings (RECT) has a current Financial Strength of 8. The current Financial Strength is 8, which is 14% above median its 10-year median of 7.00. Rectitude Holdings' overall GF Score™ is 21/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Rectitude Holdings (RECT), the current Financial Strength is 8 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Rectitude Holdings Business Description

Address No. 35 Tampines Industrial Avenue 5, T5 Tampines, Singapore, SGP, 528627
Rectitude Holdings Ltd is principally involved in the provision of safety equipment, encompassing essential items such as personal protective clothing, hand gloves, safety footwear, and personal fall arrest systems (a system used to arrest an employee in a fall from a walking-working surface, usually consisting of a body harness, anchorage, and connector), portable fire extinguishers and traffic products such as rubber speed humps, wheel stops and wheel chocks. Additionally the company has added auxiliary products such as industrial hardware tools and electrical hardware required for construction sites.
21GF Score

Get the complete analysis for RECT

Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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