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Cuentas (Cuentas) Financial Strength : 2 (As of Mar. 2024)


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What is Cuentas Financial Strength?

Cuentas 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:

Cuentas 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 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.

Cuentas did not have earnings to cover the interest expense. Cuentas's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.11. As of today, Cuentas's Altman Z-Score is -23.42.


Competitive Comparison of Cuentas's Financial Strength

For the Software - Application subindustry, Cuentas'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.


Cuentas's Financial Strength Distribution in the Software Industry

For the Software industry and Technology sector, Cuentas's Financial Strength distribution charts can be found below:

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



Cuentas 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:

Cuentas's Interest Expense for the months ended in Mar. 2024 was $-0.01 Mil. Its Operating Income for the months ended in Mar. 2024 was $-0.84 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $0.10 Mil.

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

Cuentas 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.

Cuentas'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
=(0.189 + 0.102) / 2.556
=0.11

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.

Cuentas has a Z-score of -23.42, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of -23.42 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.


Cuentas  (OTCPK:CUEN) 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.

Cuentas 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.


Cuentas Financial Strength Related Terms

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


Cuentas (Cuentas) Business Description

Traded in Other Exchanges
N/A
Address
235 Lincoln Road, Suite 210, Miami Beach, FL, USA, 33139
Cuentas Inc is a FinTech e-banking and e-commerce service provider with proprietary technology aimed at providing solutions for the underbanked and un-banked Hispanic and Latino population. The company operates in two segments: Telecommunications and General Purpose Reloadable Cards. Its services include mobile banking, online banking, prepaid debit, ACH and mobile deposits, cash remittance, peer-to-peer money transferring, and providing access to bank accounts for customers who previously could not obtain bank accounts. The proprietary Cuentas General Purpose Reloadable (GPR) Card provides holders with a digital wallet, discounts for purchases at major physical and online retailers, rewards, and the ability to purchase digital content.
Executives
Arik Maimon officer: CEO 1111 BRICKELL AVENUE, SUITE 2200, MIAMI FL 33131
Jeffery D. Johnson officer: Chief Executive Officer 235 LINCOLN RD., SUITE 210, MIAMI BEACH FL 33139
Cima Telecom, Inc. 10 percent owner 1728 CORAL WAY, 6TH FLOOR, MIAMI FL 33145
Yochanon Bruk director 1898 NW 74TH AVE, PEMBROKE PINES FL 33024
Richard J Berman director 305 COLLEGE ROAD EAST, PRINCETON NJ 08540
Adiv Baruch director 9 SHAUL AVIGUR ST., TEL AVIV L3 69379
Ran Daniel officer: Chief Financial Officer 101 WEST 90TH STREET, NEW YORK NY 10024
Heritage Ventures Ltd 10 percent owner SUITE 31 THE MALL, BEACON COURT, SANDYFORD, DUBLIN 18 L2 D18 R8Y7
Harrison Vargas 10 percent owner 10007 VESTAL PLACE, CORAL SPRINGS FL 33071
De Prado Michael A. officer: President & COO 1111 BRICKELL AVENUE, SUITE 2200, MIAMI FL 33131
Robert Rico other: Resigned officer and director 4775 COLLINS AVE # 4205, MIAMI BEACH NJ 33140
Calvin Lewis other: Resigned officer and director 4779 COLLINS AVE, 1907, MIAMI BEACH FL 33140
Lisa Bischof director, officer: Treasurer 6980 SOUTH EDGERTON ROAD, BRECKSVILLE OH 44141
D Bruce Veness director, officer: Corporate Secretary 6980 SOUTH EDGERTON ROAD, BREAKSVILLE OH 44141
John L Bianco director, 10 percent owner, officer: CEO/President 6980 SOUTH EDGERTON ROAD, BRECKSVILLE OH 44141

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