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RZLV (Rezolve AI) Financial Strength : 1 (As of Jun. 2024)


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What is Rezolve AI Financial Strength?

Rezolve AI has the Financial Strength Rank of 1. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

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.

Rezolve AI did not have earnings to cover the interest expense. Rezolve AI's debt to revenue ratio for the quarter that ended in Jun. 2024 was 428.60. As of today, Rezolve AI's Altman Z-Score is -181.52.


Competitive Comparison of Rezolve AI's Financial Strength

For the Software - Infrastructure subindustry, Rezolve AI'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.


Rezolve AI's Financial Strength Distribution in the Software Industry

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

* The bar in red indicates where Rezolve AI's Financial Strength falls into.


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Rezolve AI 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:

Rezolve AI's Interest Expense for the months ended in Jun. 2024 was $-3.01 Mil. Its Operating Income for the months ended in Jun. 2024 was $-9.67 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2024 was $44.13 Mil.

Rezolve AI's Interest Coverage for the quarter that ended in Jun. 2024 is

Rezolve AI did not have earnings to cover the interest expense.

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

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

Rezolve AI's Debt to Revenue Ratio for the quarter that ended in Jun. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1.299 + 44.133) / 0.106
=428.60

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.

Rezolve AI has a Z-score of -181.52, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of -181.52 is in distress zone. This implies bankruptcy possibility in the next two years.

* 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.


Rezolve AI  (NAS:RZLV) 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.

Rezolve AI has the Financial Strength Rank of 1. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Rezolve AI Financial Strength Related Terms

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Rezolve AI Business Description

Traded in Other Exchanges
Address
80 New Bond Street, 3rd Floor, London, GBR, W1S 1SB
Rezolve AI Ltd provides a mobile commerce and engagement platform, underpinned by machine learning, that enables retailers, brands and manufacturers to engage with consumers in a broad range of locations and settings via their mobile devices and personal computers. its platform allows for mobile engagement with merchants using its software to extend their business to consumers' mobile devices and computers in different ways.