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Lumos Networks (Lumos Networks) Financial Strength : 0 (As of Sep. 2017)


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What is Lumos Networks Financial Strength?

Lumos Networks has the Financial Strength Rank of 0.

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.

Lumos Networks's Interest Coverage for the quarter that ended in Sep. 2017 was 0.98. Lumos Networks's debt to revenue ratio for the quarter that ended in Sep. 2017 was 2.08. As of today, Lumos Networks's Altman Z-Score is 0.00.


Competitive Comparison of Lumos Networks's Financial Strength

For the Telecom Services subindustry, Lumos Networks'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.


Lumos Networks's Financial Strength Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Lumos Networks's Financial Strength distribution charts can be found below:

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



Lumos Networks 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:

Lumos Networks's Interest Expense for the months ended in Sep. 2017 was $-7.8 Mil. Its Operating Income for the months ended in Sep. 2017 was $7.6 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2017 was $388.0 Mil.

Lumos Networks's Interest Coverage for the quarter that ended in Sep. 2017 is

Interest Coverage=-1*Operating Income (Q: Sep. 2017 )/Interest Expense (Q: Sep. 2017 )
=-1*7.616/-7.771
=0.98

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

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

Lumos Networks's Debt to Revenue Ratio for the quarter that ended in Sep. 2017 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2017 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(73.825 + 388.027) / 222.44
=2.08

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.

Lumos Networks has a Z-score of 0.00, indicating it is in Distress Zones. This implies bankrupcy 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.


Lumos Networks  (NAS:LMOS) 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.

Lumos Networks has the Financial Strength Rank of 0.


Lumos Networks Financial Strength Related Terms

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


Lumos Networks (Lumos Networks) Business Description

Traded in Other Exchanges
N/A
Address
Lumos Networks Corp is a fiber-based bandwidth infrastructure and service provider in the Mid-Atlantic region. It provides services to carrier and enterprise customers, including healthcare providers, local government agencies, financial institutions and educational institutions. The principal products and services of the group include Multiprotocol Label Switching based Ethernet, Metro Ethernet, Fiber to the Cell site wireless backhaul and data transport services, wavelength transport services and IP services. The company operates through three segments Data, Residential and Small Business, and RLEC Access of which data segment accounts for major revenue source which include enterprise data, transport and Fiber to the Cell product groups.
Executives
Peter D Aquino director MOTIENT CORP, 300 KNIGHTBRIDGE PARKWAY, LINCOLNSHIRE IL 60069
Shawn Francis Odonnell director 120 ALBANY STREET SUITE 450, TOWER II NEW BRUNSWICK NJ 08901
Robert E Guth director 750 THIRD AVENUE NEW YORK NY 10017
Jerry E Vaughn director US UNWIRED INC 901 LAKESHORE DRIVE LAKE CHARLES LA 70601
Michael Sicoli director 196 VAN BUREN STREET HERNDON VA 20170
Julia B North director 1170 PEACHTREE STR NE, SUITE 2300, ATLANTA GA 30309
Quadrangle Select Partners Ii L P 10 percent owner 375 PARK AVE, NEW YORK NY 10152
Quadrangle Capital Partners Ii-a L P 10 percent owner 375 PARK AVE, NEW YORK NY 10152
Quadrangle Gp Investors Ii Lp 10 percent owner C/O QUADRANGLE GROUP LLC, 375 PARK AVENUE, NEW YORK NY 10152
Qcp Gp Investors Ii Llc 10 percent owner C/O QUADRANGLE GROUP LLC, 1271 AVENUE OF THE AMERICAS, SUITE 43A, NEW YORK NY 10020
Harold L Covert officer: EVP, CFO & Treasurer 400 NORTH MCCARTHY BLVD, MILPITAS CA 95035

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