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Shelly Group (XBUL:SLYG) Financial Strength : 10 (As of Sep. 2023)


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What is Shelly Group Financial Strength?

Shelly Group has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Shelly Group Plc 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.

Shelly Group's Interest Coverage for the quarter that ended in Sep. 2023 was 325.03. Shelly Group's debt to revenue ratio for the quarter that ended in Sep. 2023 was 0.02. As of today, Shelly Group's Altman Z-Score is 46.00.


Competitive Comparison of Shelly Group's Financial Strength

For the Conglomerates subindustry, Shelly 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.


Shelly Group's Financial Strength Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Shelly Group's Financial Strength distribution charts can be found below:

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



Shelly 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:

Shelly Group's Interest Expense for the months ended in Sep. 2023 was лв-0.0 Mil. Its Operating Income for the months ended in Sep. 2023 was лв9.4 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was лв1.5 Mil.

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

Interest Coverage=-1*Operating Income (Q: Sep. 2023 )/Interest Expense (Q: Sep. 2023 )
=-1*9.426/-0.029
=325.03

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

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Shelly Group Plc has enough cash to cover all of its debt. Its financial situation is stable.

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

Shelly 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
=(1.042 + 1.519) / 126.156
=0.02

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.

Shelly Group has a Z-score of 46.00, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 46 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.


Shelly Group  (XBUL:SLYG) 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.

Shelly Group has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.


Shelly Group Financial Strength Related Terms

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


Shelly Group (XBUL:SLYG) Business Description

Traded in Other Exchanges
Address
103 Cherni Vrah Boulevard, Floor 8, Sofia, BGR, 1407
Shelly Group Plc formerly Allterco AD is engaged in the acquisition, management, evaluation, and sale of participations in Bulgarian & foreign companies; acquisition, management, and sale of bonds; acquisition, evaluation, sale, and patents. It delivers innovation through designing, producing, and distributing high-quality IoT products. It group manages the business with electronic devices as one operating segment. Its products include Smartwatches, Tracker, and Home automation. It derives the majority of its revenue from the sale of smart devices.
Executives
Dimitar Dimitrov Chief Executive Officer (CEO)