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Redishred Capital (TSXV:KUT) Financial Strength : 5 (As of Dec. 2023)


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What is Redishred Capital Financial Strength?

Redishred Capital has the Financial Strength Rank of 5.

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.

Redishred Capital's Interest Coverage for the quarter that ended in Dec. 2023 was 0.17. Redishred Capital's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.53. As of today, Redishred Capital's Altman Z-Score is 1.23.


Competitive Comparison of Redishred Capital's Financial Strength

For the Specialty Business Services subindustry, Redishred Capital'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.


Redishred Capital's Financial Strength Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Redishred Capital's Financial Strength distribution charts can be found below:

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



Redishred Capital 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:

Redishred Capital's Interest Expense for the months ended in Dec. 2023 was C$-0.63 Mil. Its Operating Income for the months ended in Dec. 2023 was C$0.11 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was C$11.29 Mil.

Redishred Capital'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*0.107/-0.628
=0.17

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

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

Redishred Capital'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
=(24.652 + 11.291) / 67.264
=0.53

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.

Redishred Capital has a Z-score of 1.23, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.23 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.


Redishred Capital  (TSXV:KUT) 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.

Redishred Capital has the Financial Strength Rank of 5.


Redishred Capital Financial Strength Related Terms

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


Redishred Capital (TSXV:KUT) Business Description

Traded in Other Exchanges
Address
2233 Argentia Road, Suite 202, Mississauga, ON, CAN, L5N 2X7
Redishred Capital Corp is a company that manages and operates the Proshred brand and business platform in the United States and internationally. It operates the Proshred system under two business models, via franchising in the United States, and via direct ownership of shredding trucks and facilities in eight locations in the United States. The operating segments of the company are (1) the granting and managing of shredding business franchises under the "Proshred" trademark (Franchising and licensing), (2) the operation of the corporately owned shredding business (Corporate locations) and (3) supporting the franchises and corporately owned shredding businesses (Corporate).

Redishred Capital (TSXV:KUT) Headlines

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