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Shoals Technologies Group (NAS:SHLS) Financial Strength

: 6 (As of Sep. 2023)
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Shoals Technologies Group has the Financial Strength Rank of 6.

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.

Shoals Technologies Group did not have earnings to cover the interest expense. Shoals Technologies Group's debt to revenue ratio for the quarter that ended in Sep. 2023 was 0.35. As of today, Shoals Technologies Group's Altman Z-Score is 6.38.


Competitive Comparison

For the Solar subindustry, Shoals Technologies Group'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.


Shoals Technologies Group Financial Strength Distribution

For the Semiconductors industry and Technology sector, Shoals Technologies Group's Financial Strength distribution charts can be found below:

* The bar in red indicates where Shoals Technologies Group's Financial Strength falls into.



Shoals Technologies Group 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:

Shoals Technologies Group's Interest Expense for the months ended in Sep. 2023 was $-5.9 Mil. Its Operating Income for the months ended in Sep. 2023 was $-10.6 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was $188.4 Mil.

Shoals Technologies Group's Interest Coverage for the quarter that ended in Sep. 2023 is

Shoals Technologies Group did not have earnings to cover the interest expense.

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

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

Shoals Technologies Group's Debt to Revenue Ratio for the quarter that ended in Sep. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(2 + 188.38) / 536.836
=0.35

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.

Shoals Technologies Group has a Z-score of 6.38, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 6.38 is strong.

* 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.


Shoals Technologies Group  (NAS:SHLS) 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.

Shoals Technologies Group has the Financial Strength Rank of 6.


Shoals Technologies Group Financial Strength Related Terms

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


Shoals Technologies Group (NAS:SHLS) Business Description

Traded in Other Exchanges
Address
1400 Shoals Way, Portland, TN, USA, 37148
Shoals Technologies Group Inc is a provider of electrical balance of system or EBOS solutions for solar energy projects, primarily in the United States. EBOS encompasses components that are necessary to carry electric current produced by solar panels to an inverter. The products are sold principally to engineering, procurement and construction firms that build solar energy projects. In 2022 the company entered the electric vehicle charging market.
Executives
Jeffery Tolnar officer: President C/O SHOALS TECHNOLOGIES GROUP, 1400 SHOALS WAY, PORTLAND TN 37148
Mehgan Peetz officer: General Counsel C/O SHOALS TECHNOLOGIES GROUP, 1400 SHOALS WAY, PORTLAND TN 37148
Dominic Bardos officer: Chief Financial Officer 1801 RUSSELLVILLE RD, BOWLING GREEN KY 42101
Brandon Moss officer: Chief Executive Officer C/O SHOALS TECHNOLOGIES GROUP, 1400 SHOALS WAY, PORTLAND TN 37148
Jason R Whitaker director, officer: Chief Executive Officer C/O SHOALS TECHNOLOGIES GROUP, 1400 SHOALS WAY, PORTLAND TN 37148
Dean Solon director C/O SHOALS TECHNOLOGIES GROUP, 1400 SHOALS WAY, PORTLAND TN 37148
Jeannette M Mills director C/O MEDIFAST, INC., 3600 CRONDALL LANE, OWINGS MILLS MD 21117
Robert K. Julian director C/O SPORTSMAN'S WAREHOUSE, 7035 SOUTH HIGH TECH DRIVE, MIDVALE UT 84047
Philip A Garton officer: Chief Financial Officer C/O SHOALS TECHNOLOGIES GROUP, 1400 SHOALS WAY, PORTLAND TN 37148
White John Joseph Jr officer: Chief Operating Officer C/O SHOALS TECHNOLOGIES GROUP, 1400 SHOALS WAY, PORTLAND TN 37148
Bam Partners Trust 10 percent owner 181 BAY STREET, SUITE 300, TORONTO A6 M5J 2T3
Lori S Sundberg director 400 NORTH FIFTH STREET, PHOENIX AZ 85004
Ty P. Daul director 77 RIO ROBLES, SAN JOSE CA 95134
Toni Volpe director C/O SHOALS TECHNOLOGIES GROUP, 1400 SHOALS WAY, PORTLAND TN 37148
Solon Holdco Iii, Llc 10 percent owner 1400 SHOALS WAY, PORTLAND TN 37148