Liquidity Services has the Financial Strength Rank of 7. It shows strong financial strength and is unlikely to fall into distressed situations.
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 Liquidity Services's interest coverage with the available data.
Liquidity Services's debt to revenue ratio for the quarter that ended in Dec. 2020 was 0.25.
As of today, Liquidity Services's Altman Z-Score is 4.10.
Competitive Comparison
* 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.
Liquidity Services Financial Strength Distribution
* The bar in red indicates where Liquidity Services's Financial Strength falls into.
Liquidity Services 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:
Liquidity Services's Interest Expense for the
months ended in Dec. 2020 was $0.0 Mil. Its Operating Income for the
months ended in Dec. 2020 was $4.6 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2020 was $10.0 Mil.
Liquidity Services's Interest Coverage for the quarter that ended in Dec. 2020 is
| GuruFocus does not calculate Liquidity Services'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 is at least 5. Liquidity Services Inc has enough cash to cover all of its debt. Its financial situation is stable.
2. Debt to revenue ratio. The lower, the better.
Liquidity Services's Debt to Revenue Ratio for the quarter that ended in Dec. 2020 is
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.
Liquidity Services has a Z-score of 4.10, indicating it is in Safe Zones. This implies the Z-Score is strong.
Good Sign:
Altman Z-score of 4.1 is strong.
* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.
Liquidity Services Financial Strength Headlines
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