What is Dragonfly Energy Holdings Financial Strength?
Dragonfly Energy Holdings 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:
Dragonfly Energy Holdings Corp 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.
Dragonfly Energy Holdings did not have earnings to cover the interest expense.
Dragonfly Energy Holdings's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.93.
As of today, Dragonfly Energy Holdings's Altman Z-Score is -0.08.
Competitive Comparison of Dragonfly Energy Holdings's Financial Strength
For the Electrical Equipment & Parts subindustry, Dragonfly Energy Holdings'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.
Dragonfly Energy Holdings's Financial Strength Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Dragonfly Energy Holdings's Financial Strength distribution charts can be found below:
* The bar in red indicates where Dragonfly Energy Holdings's Financial Strength falls into.
Dragonfly Energy Holdings 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.
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:
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.
Dragonfly Energy Holdings has a Z-score of -0.08, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of -0.08 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.
Dragonfly Energy Holdings (NAS:DFLI) 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.
Dragonfly Energy Holdings 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.
Dragonfly Energy Holdings Financial Strength Related Terms
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Dragonfly Energy Holdings (Dragonfly Energy Holdings) Business Description
Dragonfly Energy Holdings Corp is a manufacturer of non-toxic deep cycle lithium-ion batteries that are designed to displace lead acid batteries in a number of different storage applications and end markets including RV, marine vessel, and solar and off-grid industries, with disruptive solid-state cell technology currently under development.
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