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Student Transportation (Student Transportation) Financial Strength : 0 (As of Dec. 2017)


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What is Student Transportation Financial Strength?

Student Transportation 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.

Student Transportation's Interest Coverage for the quarter that ended in Dec. 2017 was 3.79. Student Transportation's debt to revenue ratio for the quarter that ended in Dec. 2017 was 0.47. As of today, Student Transportation's Altman Z-Score is 0.00.


Competitive Comparison of Student Transportation's Financial Strength

For the Railroads subindustry, Student Transportation'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.


Student Transportation's Financial Strength Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Student Transportation's Financial Strength distribution charts can be found below:

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



Student Transportation 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:

Student Transportation's Interest Expense for the months ended in Dec. 2017 was $-5.0 Mil. Its Operating Income for the months ended in Dec. 2017 was $18.9 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2017 was $366.7 Mil.

Student Transportation's Interest Coverage for the quarter that ended in Dec. 2017 is

Interest Coverage=-1*Operating Income (Q: Dec. 2017 )/Interest Expense (Q: Dec. 2017 )
=-1*18.945/-4.995
=3.79

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

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

Student Transportation's Debt to Revenue Ratio for the quarter that ended in Dec. 2017 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2017 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 366.701) / 775.424
=0.47

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.

Student Transportation 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.


Student Transportation  (NAS:STB) 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.

Student Transportation has the Financial Strength Rank of 0.


Student Transportation Financial Strength Related Terms

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Student Transportation (Student Transportation) Business Description

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Student Transportation Inc is a Canadian company which provides school transportation and management services to public and private schools in both the United States and Canada. Services provided by the company are managed transportation which covers driver recruiting and training, safety, vehicle maintenance, insurance and routing/scheduling, special needs transportation with specially equipped buses and bus routes to specialized schools, charter services for special events and extracurricular activities, Direct-To-Parent school bus service. The company operates its business in two segments namely transportation segment and an oil and gas segment in US and Canada. The majority of the company's revenue comes from transportation business in the US.

Student Transportation (Student Transportation) Headlines