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HTGC (Hercules Capital) Financial Strength : 4 (As of Mar. 2025)


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What is Hercules Capital Financial Strength?

Hercules Capital has the Financial Strength Rank of 4.

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 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.

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 Mar. 2025 was 6.86. 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 Mar. 2025 was $-19.7 Mil. Its Operating Income for the months ended in Mar. 2025 was $0.0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was $1,993.8 Mil.

Hercules Capital's Interest Coverage for the quarter that ended in Mar. 2025 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 Mar. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 1993.834) / 290.828
=6.86

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 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.

Hercules Capital has the Financial Strength Rank of 4.


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

Traded in Other Exchanges
Address
1 North B Street, Suite 2000, San Mateo, CA, USA, 94401
Hercules Capital Inc is a specialty finance company that provides senior secured loans to high-growth, venture capital-backed companies in various technology, life sciences, and sustainable and renewable technology industries. It invests majorly 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
Nikos Theodosopoulos director C/O ARISTA NETWORKS, INC., 5453 GREAT AMERICA PARKWAY, SANTA CLARA CA 95054
Deanne Aguirre director C/O HERCULES CAPITAL, INC., 400 HAMILTON AVENUE, SUITE 310, PALO ALTO CA 94301
Wade Loo director C/O HERCULES CAPITAL, INC., 400 HAMILTON AVENUE, SUITE 310, PALO ALTO CA 94301
Robert P Badavas director C/O HERCULES CAPITAL, INC., 400 HAMILTON AVENUE, SUITE 310, PALO ALTO IL 94301
Gayle A Crowell director
Thomas J Fallon director C/O INFINERA CORPORATION, 140 CASPIAN COURT, SUNNYVALE CA 94089
Scott Bluestein officer: Chief Investment Officer 303 COLUMBUS AVENUE, APT 506, BOSTON MA 02116
Paramjeet K Randhawa director C/O HERCULES CAPITAL, INC., 400 HAMILTON AVENUE, SUITE 310, PALO ALTO CA 94301
Christian Follmann officer: Chief Operating Officer C/O HERCULES CAPITAL, INC., 400 HAMILTON AVENUE, SUITE 310, PALO ALTO CA 94301
Kiersten Zaza Botelho officer: General Counsel & CCO C/O HERCULES CAPITAL, INC., 400 HAMILTON AVENUE, SUITE 310, PALO ALTO CA 94301
Carol L Foster director C/O HERCULES CAPITAL, INC., 400 HAMILTON AVENUE, SUITE 310, PALO ALTO CA 94301
Seth H Meyer officer: Chief Financial Officer C/O HERCULES CAPITAL, INC., 400 HAMILTON AVENUE, SUITE 310, PALO ALTO CA 94301
Jorge Titinger director 7005 SOUTHFRONT ROAD, LIVERMORE CA 94551
Doreen Woo Ho director C/O HERCULES CAPITAL, INC., 400 HAMILTON AVENUE, SUITE 310, PALO ALTO CA 94301
Waldt Gerard R Jr. officer: Interim Chief Accounting Off 400 HAMILTON AVENUE SUITE 310, PALO ALTO CA 94301