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NEL ASA (NEL ASA) Financial Strength : 7 (As of Mar. 2024)


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What is NEL ASA Financial Strength?

NEL ASA has the Financial Strength Rank of 7.

Good Sign:

NEL ASA shows strong financial strength.

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 NEL ASA's interest coverage with the available data. NEL ASA's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.17. As of today, NEL ASA's Altman Z-Score is 2.94.


Competitive Comparison of NEL ASA's Financial Strength

For the Specialty Industrial Machinery subindustry, NEL ASA'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.


NEL ASA's Financial Strength Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, NEL ASA's Financial Strength distribution charts can be found below:

* The bar in red indicates where NEL ASA's Financial Strength falls into.



NEL ASA 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:

NEL ASA's Interest Expense for the months ended in Mar. 2024 was $0.0 Mil. Its Operating Income for the months ended in Mar. 2024 was $-7.0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $21.1 Mil.

NEL ASA's Interest Coverage for the quarter that ended in Mar. 2024 is

GuruFocus does not calculate NEL ASA's interest coverage with the available data.

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

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

NEL ASA's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(3.878 + 21.056) / 145.948
=0.17

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.

NEL ASA has a Z-score of 2.94, indicating it is in Grey Zones. This implies that NEL ASA is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.94 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* 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.


NEL ASA  (OTCPK:NLLSF) 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.

NEL ASA has the Financial Strength Rank of 7.


NEL ASA Financial Strength Related Terms

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


NEL ASA (NEL ASA) Business Description

Traded in Other Exchanges
Address
Karenslyst alle 49, Oslo, NOR, N-0279
NEL ASA is a hydrogen company delivering optimal solutions to produce, store and distribute hydrogen from renewable energy. It serves industries, energy, and gas companies with hydrogen technology. The company's hydrogen solutions cover the entire value chain from hydrogen production technologies to the manufacturing of hydrogen fueling stations, providing all fuel cell electric vehicles with the same fast fueling and long range as conventional vehicles. The company's segments include Fueling and Electroiyser. It generates maximum revenue from the Electroiyser segment.