GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » Argo Blockchain PLC (LSE:ARB) » Definitions » Financial Strength

Argo Blockchain (LSE:ARB) Financial Strength : 1 (As of Dec. 2023)


View and export this data going back to 2018. Start your Free Trial

What is Argo Blockchain Financial Strength?

Argo Blockchain has the Financial Strength Rank of 1. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Argo Blockchain PLC 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.

Argo Blockchain's Interest Coverage for the quarter that ended in Dec. 2023 was 0.56. Argo Blockchain's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.89. As of today, Argo Blockchain's Altman Z-Score is -3.34.


Competitive Comparison of Argo Blockchain's Financial Strength

For the Capital Markets subindustry, Argo Blockchain'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.


Argo Blockchain's Financial Strength Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Argo Blockchain's Financial Strength distribution charts can be found below:

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



Argo Blockchain 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:

Argo Blockchain's Interest Expense for the months ended in Dec. 2023 was £-1.94 Mil. Its Operating Income for the months ended in Dec. 2023 was £1.08 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was £38.08 Mil.

Argo Blockchain's Interest Coverage for the quarter that ended in Dec. 2023 is

Interest Coverage=-1*Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*1.084/-1.94
=0.56

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

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

Argo Blockchain's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(11.313 + 38.076) / 55.64
=0.89

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.

Argo Blockchain has a Z-score of -3.34, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of -3.34 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.


Argo Blockchain  (LSE:ARB) 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.

Argo Blockchain has the Financial Strength Rank of 1. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Argo Blockchain Financial Strength Related Terms

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


Argo Blockchain (LSE:ARB) Business Description

Traded in Other Exchanges
Address
27/28 Eastcastle Street, Eastcastle House, London, GBR, W1W 8DH
Argo Blockchain PLC is a global data center business that provides a powerful and efficient platform for cryptocurrency mining operations. The company has operations in strategic locations in North America.

Argo Blockchain (LSE:ARB) Headlines