Investar Holding (FRA:7ZH) Financial Strength : 2 (As of Mar. 2024)

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What is Investar Holding Financial Strength?

Investar Holding has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Investar Holding 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.

GuruFocus does not calculate Investar Holding's interest coverage with the available data. Investar Holding's debt to revenue ratio for the quarter that ended in Mar. 2024 was 3.90. Altman Z-Score does not apply to banks and insurance companies.

Investar Holding 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:

Investar Holding's Interest Expense for the months ended in Mar. 2024 was €-17.03 Mil. Its Operating Income for the months ended in Mar. 2024 was €0.00 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was €280.16 Mil.

Investar Holding's Interest Coverage for the quarter that ended in Mar. 2024 is

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

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

Investar Holding's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is

Debt to Revenue Ratio	=	Total Debt (Q: Mar. 2024 )			/	Revenue
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Revenue
	=	(0	+	280.158)	/	71.896
	=	3.90

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.

Altman Z-Score does not apply to banks and insurance companies.

* 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.

Investar Holding (FRA:7ZH) 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.

Investar Holding has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Investar Holding Financial Strength Related Terms

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Investar Holding (FRA:7ZH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Investar Holding Corp (FRA:7ZH) » Definitions » Financial Strength

Comparable Companies

Traded in Other Exchanges

ISTR:USA

Address

10500 Coursey Boulevard, Baton Rouge, LA, USA, 70816

Website

https://www.investarbank.com

Investar Holding Corp is a US-based financial holding company. Through its subsidiaries, it offers a variety of commercial and retail lending products throughout its market areas, including business loans to small to medium-sized businesses, as well as loans to individuals. It has business operations spread across the United States and serves its customers through several service branches. The bank also offers cashiers' checks, direct deposit of payroll and Social Security checks, night depository, bank-by-mail, automated teller machines with deposit automation and debit cards.