ROMA — financial distress indicators
Financial-health summary
ROMA's reported numbers place it in the 'Very weak' financial-health band (distress score 70/100). The main indicators are cash runway under 12 months, losses in each of the last 3 years and operations consume cash. Independently, the Ohlson accounting model puts its 1-year failure probability at 100%. In its favour: strong current ratio (22.34).
Stress by dimension
Share price — last 12 months
Indicators behind the score
Each red flag shows the evidence from the company’s own filings and the financial or legal principle behind it. Points add to the 0–100 score.
At the current free-cash-flow burn, cash covers ~4 months.
Going-concern standard: management must assess ability to continue for 12 months (ASC 205-40). Runway below that horizon forces dilution, asset sales or default.
Net income negative in 3 of 3 fiscal years.
Persistent losses erode equity and the capacity to absorb shocks.
Operating cash flow negative in 3 of the last 3 years.
A business that cannot fund itself from operations depends on external capital to survive.
O-score 10.62 → model probability 100%.
Ohlson (1980) logit model of 1-year corporate failure; O > 0 (p > 50%) is the original failure cut-off.
Share count up +283% in a year.
Survival financing: repeated equity raises at depressed prices.
Revenue changed -22% year over year.
Falling sales reduce cash available for debt service.
Operating margin fell from -62% to -315% in two years.
Sharp margin compression signals loss of pricing power or cost control.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Strong current ratio (22.34).
📰 Recent news scan
- (ROMA) Volatility Zones as Tactical Triggers - Stock Traders DailyGoogle News · 2026-10-08
- Roma Green Finance Limited Ordinary Shares (NASDAQ: ROMA) Stock Price, News & Analysis - KalkineGoogle News · 2026-10-06
- ROMA: Roma Green Finance Ltd Latest Stock Price, Analysis, News and Trading Ideas - StocktwitsGoogle News · 2026-09-27
- ROMA Stock Price and Chart — NASDAQ:ROMA - TradingViewGoogle News · 2026-06-16
- ROMA Green Finance Limited Launches New Investment Vertical in Energy-Efficient AI and HPC Infrastructure - Quiver QuantitativeGoogle News · 2026-06-13
⚖️ U.S. legal pathway — Title 11, U.S. Code
Which chapter would apply?
- Chapter 11 — reorganisation. Management usually stays in control as debtor-in-possession; the automatic stay (§362) halts collection; a plan must meet the best-interests test (§1129(a)(7)) and the absolute priority rule (§1129(b)) — creditors are paid before shareholders, who are frequently wiped out.
- Chapter 7 — liquidation. A trustee sells assets and distributes proceeds by statutory priority (§§507, 726).
- Subchapter V (“Chapter 5”) is a fast track for small-business debtors under a statutory debt cap, but SEC-reporting companies are excluded (§101(51D)) — so it rarely applies to listed companies.
What typically triggers a filing
- Payment default or covenant breach lenders will not waive; a debt maturity that cannot be refinanced.
- Auditor going-concern doubt (ASC 205-40 / PCAOB AS 2415) — often itself a default trigger in loan agreements.
- Creditors can force a case with an involuntary petition (§303) if debts are not paid as they come due.
- Delisting after sustained sub-$1 prices or equity deficits cuts off equity funding.
Transactions shortly before filing can be clawed back (preferences — 90 days, §547; fraudulent transfers — 2 years, §548).
Frequently asked questions
What do ROMA's financial-health indicators show?
As of 2026-10-08, ROMA's public financial data places it in the 'Very weak' band with a distress score of 70/100, driven by cash runway under 12 months, losses in each of the last 3 years and operations consume cash. This is a statistical screen of reported numbers — it does not mean the company is insolvent, has defaulted or will enter insolvency proceedings.
What is ROMA's financial distress score?
70/100 ('Very weak'). Ohlson O-score 10.62 (model 1-year failure probability 100%).
What works in ROMA's favour?
Strong current ratio (22.34).
How are shareholders treated if a company enters insolvency?
In a Chapter 11 reorganisation the absolute priority rule pays secured lenders, then unsecured creditors, before shareholders — so existing shares are usually cancelled or heavily diluted. In Chapter 7 the company is liquidated and shareholders rarely recover anything.
Other Unclassified companies with distress indicators
- CNEY (CNEY)Very weak 100/100
- EPOW (EPOW)Very weak 100/100
- GIBO (GIBO)Very weak 100/100
- GNS (GNS)Very weak 100/100
- HKPD (HKPD)Very weak 100/100
- HUBC (HUBC)Very weak 100/100
Methodology
Score = capped sum of rule-based red flags across seven dimensions (liquidity, solvency, profitability, cash flow, sales trend, market signal, news). Ohlson O-score (1980) gives an accounting-based 1-year failure probability; Merton distance-to-default (Bharath & Shumway 2008) gives a market-implied probability. Financial institutions use a capital-based rule set. Recalculated every trading day from the latest filings, prices and news.