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Xos (XOS) Financial Strength : 3 (As of Dec. 2023)


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What is Xos Financial Strength?

Xos has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Xos 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.

GuruFocus does not calculate Xos's interest coverage with the available data. Xos's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.42. As of today, Xos's Altman Z-Score is -3.07.


Competitive Comparison of Xos's Financial Strength

For the Farm & Heavy Construction Machinery subindustry, Xos'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.


Xos's Financial Strength Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, Xos's Financial Strength distribution charts can be found below:

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



Xos 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:

Xos's Interest Expense for the months ended in Dec. 2023 was $0.00 Mil. Its Operating Income for the months ended in Dec. 2023 was $-11.83 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $25.50 Mil.

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

GuruFocus does not calculate Xos's interest coverage with the available data.

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

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

Xos'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
=(5.022 + 25.496) / 73.504
=0.42

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.

Xos has a Z-score of -3.07, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of -3.07 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.


Xos  (NAS:XOS) 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.

Xos has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Xos Financial Strength Related Terms

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


Xos (XOS) Business Description

Traded in Other Exchanges
N/A
Address
3550 Tyburn Street, Unit 100, Los Angeles, CA, USA, 90065
Xos Inc is an electric mobility company. It designs and develops fully electric battery mobility systems specifically for commercial fleets. The company's primary focus is on medium- and heavy-duty commercial vehicles that travel on last mile routes. The company leverages its proprietary technologies to provide commercial fleets zero emission vehicles that are easier to maintain and more cost-efficient on a total cost of ownership basis than internal combustion engine and commercial EV counterparts.
Executives
Jose Castaneda officer: VP, Business Development 3550 TYBURN STREET, UNIT 100, LOS ANGELES CA 90065
Liana Pogosyan officer: Acting Chief Financial Officer C/O XOS, INC., 3550 TYBURN STREET, LOS ANGELES CA 90065
George N Mattson director C/O DELTA AIR LINES, INC., P.O. BOX 20574, DEPT. 981, ATLANTA GA 30320
Robert Ferber officer: Chief Technology Officer 3550 TYBURN STREET, UNIT 100, LOS ANGELES CA 90065
Giordano Sordoni director, officer: Chief Operating Officer 3550 TYBURN STREET, UNIT 100, LOS ANGELES CA 90065
Dakota Semler director, officer: Chief Executive Officer 3550 TYBURN STREET, UNIT 100, LOS ANGELES CA 90065
Edward J Rapp director 100 NE ADAMS STREET, PEORIA IL 61629
Stuart N. Bernstein director C/O XOS, INC., 3550 TYBURN STREET, LOS ANGELES CA 90065
Christen T Romero officer: General Counsel 3550 TYBURN STREET, UNIT 100, LOS ANGELES CA 90065
Anousheh Ansari director 10560 DR. MARTIN LUTHER KING JR. ST. N., ST. PETERSBURG, FL FL 33716
Alice K Jackson director 1800 LARIMER STREET, DENVER CO 80202
Burt Jordan director 4387 CHERRY HILL DRIVE, ORCHARD LAKE MI 48323
Kingsley Afemikhe officer: Chief Financial Officer 3550 TYBURN STREET, UNIT 100, LOS ANGELES CA 90065
Aljomaih Automotive Co. 10 percent owner P.O. BOX 224, KING KHALID STREET, ALJOMAIH BUILDING, 1ST FLOOR, DAMMAM T0 31411
Emerald Green Trust 10 percent owner 3211 MULHOLLAND HIGHWAY, MALIBU CA 90265