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Hercules Capital Financial Strength

: 3 (As of Jun. 2022)
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Hercules Capital 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:

Hercules Capital 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 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 Hercules Capital's interest coverage with the available data. Hercules Capital's debt to revenue ratio for the quarter that ended in Jun. 2022 was 41.96. Altman Z-Score does not apply to banks and insurance companies.


Hercules Capital 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:

Hercules Capital's Interest Expense for the months ended in Jun. 2022 was $-12.70 Mil. Its Operating Income for the months ended in Jun. 2022 was $0.00 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $1,505.27 Mil.

Hercules Capital's Interest Coverage for the quarter that ended in Jun. 2022 is

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

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

Hercules Capital's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 1505.272) / 35.872
=41.96

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.

Altman Z-Score does not apply to banks and insurance companies.

* 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.


Hercules Capital  (NYSE:HTGC) 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.

Hercules Capital 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.


Hercules Capital Financial Strength Related Terms

Thank you for viewing the detailed overview of Hercules Capital's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Hercules Capital Business Description

Hercules Capital logo
Traded in Other Exchanges
Address
400 Hamilton Avenue, Suite 310, Palo Alto, CA, USA, 94301
Hercules Capital Inc is a specialty finance company engaged in providing senior secured loans to high-growth, venture capital-backed companies in a variety of technology, life sciences, and sustainable and renewable technology industries. It invests primarily in structured debt with warrants and, to a lesser extent, in senior debt and equity investments. The company lends to and invests in portfolio companies in various technology-related industries including technology, drug discovery and development, biotechnology, life sciences, healthcare, and sustainable and renewable technology.
Executives
Follmann Christian officer: Chief Operating Officer C/O HERCULES CAPITAL, INC. 400 HAMILTON AVENUE, SUITE 310 PALO ALTO CA 94301
Botelho Kiersten Zaza officer: General Counsel & CCO C/O HERCULES CAPITAL, INC. 400 HAMILTON AVENUE, SUITE 310 PALO ALTO CA 94301
Randhawa Paramjeet K director C/O HERCULES CAPITAL, INC. 400 HAMILTON AVENUE, SUITE 310 PALO ALTO CA 94301
Loo Wade director C/O HERCULES CAPITAL, INC. 400 HAMILTON AVENUE, SUITE 310 PALO ALTO CA 94301
Meyer Seth H officer: Chief Financial Officer C/O HERCULES CAPITAL, INC. 400 HAMILTON AVENUE, SUITE 310 PALO ALTO CA 94301
Crowell Gayle A director
Foster Carol L director C/O HERCULES CAPITAL, INC. 400 HAMILTON AVENUE, SUITE 310 PALO ALTO CA 94301
Ho Doreen Woo director C/O HERCULES CAPITAL, INC. 400 HAMILTON AVENUE, SUITE 310 PALO ALTO CA 94301
Titinger Jorge director 7005 SOUTHFRONT ROAD LIVERMORE CA 94551
Waldt Gerard R Jr. officer: Interim Chief Accounting Off 400 HAMILTON AVENUE SUITE 310 PALO ALTO CA 94301
Koenig Bradford C. director C/O GSV CAPITAL CORP. 2925 WOODSIDE ROAD WOODSIDE CA 94062
Henriquez Manuel A director, officer: Chairman & CEO C/O HERCULES CAPITAL, INC. 400 HAMILTON AVENUE, SUITE 310 PALO ALTO CA 94301
Bluestein Scott officer: Chief Investment Officer 303 COLUMBUS AVENUE APT 506 BOSTON MA 02116
Grace Melanie officer: General Counsel & CCO C/O HERCULES TECHNOLOGY GROWTH CAPITAL 400 HAMILTON AVENUE, SUITE 310 PALO ALTO CA 94301
Harris Mark R officer: Chief Financial Officer C/O HERCULES TECHNOLOGY GROWTH CAPITAL 400 HAMILTON AVENUE, SUITE 310 PALO ALTO CA 94301
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