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IHS (IHS Holding) Financial Strength : 2 (As of Mar. 2025)


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What is IHS Holding Financial Strength?

IHS Holding 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:

IHS Holding Ltd 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.

IHS Holding's Interest Coverage for the quarter that ended in Mar. 2025 was 1.42. IHS Holding's debt to revenue ratio for the quarter that ended in Mar. 2025 was 2.25. As of today, IHS Holding's Altman Z-Score is -2.49.


Competitive Comparison of IHS Holding's Financial Strength

For the Real Estate Services subindustry, IHS Holding'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.


IHS Holding's Financial Strength Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, IHS Holding's Financial Strength distribution charts can be found below:

* The bar in red indicates where IHS Holding's Financial Strength falls into.


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IHS Holding 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:

IHS Holding's Interest Expense for the months ended in Mar. 2025 was $-107 Mil. Its Operating Income for the months ended in Mar. 2025 was $152 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was $3,658 Mil.

IHS Holding's Interest Coverage for the quarter that ended in Mar. 2025 is

Interest Coverage=-1*Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*152.1/-107
=1.42

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

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

IHS Holding'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
=(299.1 + 3658.3) / 1758.4
=2.25

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.

IHS Holding has a Z-score of -2.49, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of -2.49 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.


IHS Holding  (NYSE:IHS) 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.

IHS Holding 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.


IHS Holding Financial Strength Related Terms

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IHS Holding Business Description

Traded in Other Exchanges
Address
123 Victoria Street, 1 Cathedral Piazza, London, GBR, SW1E 5BP
IHS Holding Ltd is an independent owner, operator, and developer of shared telecommunications infrastructure. The company provides telecommunications infrastructure to its customers, who are MNOs, who in turn provide wireless voice and data services to their end-users. Its geographical segments are Nigeria, Sub-Saharan Africa, the Middle East and North Africa (MENA), and Latin America (Latam). The majority of its revenue is derived from Nigeria.