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Innovative Solutions Ecosystem (STU:GPPB) Financial Strength : 3 (As of Jun. 2023)


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What is Innovative Solutions Ecosystem Financial Strength?

Innovative Solutions Ecosystem has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Innovative Solutions Ecosystem SA displays poor financial strength. 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 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.

Innovative Solutions Ecosystem did not have earnings to cover the interest expense. Innovative Solutions Ecosystem's debt to revenue ratio for the quarter that ended in Jun. 2023 was 1.24. As of today, Innovative Solutions Ecosystem's Altman Z-Score is -1.15.


Competitive Comparison of Innovative Solutions Ecosystem's Financial Strength

For the Specialty Business Services subindustry, Innovative Solutions Ecosystem'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.


Innovative Solutions Ecosystem's Financial Strength Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Innovative Solutions Ecosystem's Financial Strength distribution charts can be found below:

* The bar in red indicates where Innovative Solutions Ecosystem's Financial Strength falls into.



Innovative Solutions Ecosystem 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:

Innovative Solutions Ecosystem's Interest Expense for the months ended in Jun. 2023 was €-0.23 Mil. Its Operating Income for the months ended in Jun. 2023 was €-1.89 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2023 was €11.24 Mil.

Innovative Solutions Ecosystem's Interest Coverage for the quarter that ended in Jun. 2023 is

Innovative Solutions Ecosystem 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.

Innovative Solutions Ecosystem's Debt to Revenue Ratio for the quarter that ended in Jun. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0.361 + 11.235) / 9.378
=1.24

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.

Innovative Solutions Ecosystem has a Z-score of -1.15, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of -1.15 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.


Innovative Solutions Ecosystem  (STU:GPPB) 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.

Innovative Solutions Ecosystem has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Innovative Solutions Ecosystem Financial Strength Related Terms

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Innovative Solutions Ecosystem (STU:GPPB) Business Description

Traded in Other Exchanges
N/A
Address
c/ Salcedo 6,, Madrid, ESP, 28034
Innovative Solutions Ecosystem SA provides innovative solutions in the areas of data management and security, cryptography and related applications, and other technologies that facilitate data security and the communication of organizations with customers and stakeholders.

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