What is PureCycle Technologies Financial Strength?
PureCycle Technologies has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
PureCycle Technologies Inc 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 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.
PureCycle Technologies did not have earnings to cover the interest expense.
PureCycle Technologies's debt to revenue ratio for the quarter that ended in Mar. 2025 was 66.04.
As of today, PureCycle Technologies's Altman Z-Score is 1.31.
Competitive Comparison of PureCycle Technologies's Financial Strength
For the Pollution & Treatment Controls subindustry, PureCycle Technologies'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.
PureCycle Technologies's Financial Strength Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, PureCycle Technologies's Financial Strength distribution charts can be found below:
* The bar in red indicates where PureCycle Technologies's Financial Strength falls into.
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:
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.
PureCycle Technologies has a Z-score of 1.31, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 1.31 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.
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.
PureCycle Technologies has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
PureCycle Technologies Financial Strength Related Terms
Thank you for viewing the detailed overview of PureCycle Technologies's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
PureCycle Technologies Inc is a Florida-based corporation focused on commercializing a patented dissolution process to physically separate the polymer from other plastics, color, and contaminants (the Technology), originally developed by The Procter & Gamble Company (P&G), for restoring waste polypropylene into resin with near-virgin characteristics, called PureFive resin. PureFive resin represents the family of recycled resin products produced, including ultra-pure resin and other grades used for compounding to meet customer specifications, which has similar properties and applicability for reuse as virgin polypropylene. It has a single operating segment, which encompasses integrated business activities related to the recycling of polypropylene into resins.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
PCT has been successfully added to your