What is American Capital Financial Strength?
American Capital 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.
American Capital's Interest Coverage for the quarter that ended in Sep. 2016 was 10.40.
American Capital's debt to revenue ratio for the quarter that ended in Sep. 2016 was 0.00.
As of today, American Capital's Altman Z-Score is 0.00.
Competitive Comparison of American Capital's Financial Strength
For the Asset Management subindustry, American Capital'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.
American Capital's Financial Strength Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, American Capital's Financial Strength distribution charts can be found below:
* The bar in red indicates where American Capital's Financial Strength falls into.
American Capital 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:
American Capital's Interest Expense for the
months ended in Sep. 2016 was $-5.0 Mil. Its Operating Income for the
months ended in Sep. 2016 was $52.0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2016 was $0.0 Mil.
American Capital's Interest Coverage for the quarter that ended in Sep. 2016 is
The higher the ratio, the stronger the company's financial strength is.
2. Debt to revenue ratio. The lower, the better.
American Capital's Debt to Revenue Ratio for the quarter that ended in Sep. 2016 is
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.
American Capital 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.
American Capital (American Capital) Business Description
Traded in Other Exchanges
N/A
Address
American Capital Ltd was founded in 1986 and incorporated in Delaware. On August 29, 1997, it completed an initial public offering and became a non-diversified closed end investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. It is an asset management and private equity firm. The Company originates, underwrites and manages investments in middle market private equity, leveraged finance, real estate, energy and structured products. It invests in senior and mezzanine debt and equity in buyouts of private companies sponsored by it or sponsored by other private equity funds and provide capital directly to early stage and mature private and small public companies. Its business objectives are to increase its net earnings and net asset value by making investments with attractive current yields and/or potential for equity appreciation and realized gains. Its investments can be divided into the following six business lines: American Capital One Stop Buyouts, Sponsor Finance Investments, Direct and Other Investments, European Capital, Asset Management and Structured Products. The Company competes with strategic buyers, private equity funds, mezzanine debt funds and other buyers and financing sources, including traditional financial services companies such as finance companies, commercial banks, investment banks and other equity and non-equity based investment funds. The Company and its portfolio companies are subject to regulation by laws at the local, state, federal and foreign level, including with respect to securities laws, tax and accounting standards.
Executives
| Susan K Nestegard |
director |
AMERICAN CAPITAL, LTD., 2 BETHESDA METRO, 14TH FLOOR, BETHESDA MD 20814 |
| Gordon Obrien |
officer: See Remarks |
1400 TOASTMASTER DRIVE, ELGIN IL 60120 |
| Peterson Kenneth D Jr |
director |
2 BETHESDA METRO CENTER, 14TH FLOOR, BETHESDA MD 20814 |
| Samuel Allan Flax |
officer: EVP, GC and Secretary |
2 BETHESDA METRO CENTER, 14TH FLOOR, BETHESDA MD 20814 |
| Alvin N Puryear |
director |
2 BETHESDA METRO CENTER, 14TH FLOOR, BETHESDA MD 20814 |
| Malon Wilkus |
director, officer: Chairman and CEO |
2 BETHESDA METRO CENTER, 14TH FLOOR, BETHESDA MD 20814 |
| John R Erickson |
officer: See Remarks |
2 BETHESDA METRO CENTER, 14TH FLOOR, BETHESDA MD 20814 |
| Kristen L Manos |
director |
855 EAST MAIN AVENUE, ZEELAND MI 49454-0302 |
| Ira Wagner |
officer: Pres., European Priv Fin |
2 BETHESDA METRO CENTER, 14TH FLOOR, BETHESDA MD 20814 |
| Paulson Advantage Plus Master Ltd. |
10 percent owner |
C/O MAPLES CORPORATE SERVICES LIMITED, P.O. BOX 309, UGLAND HOUSE, S. CHURCH ST, GRAND CAYMAN E9 KY1-1104 |
| Paulson Advantage Master Ltd. |
10 percent owner |
C/O MAPLES CORPORATE SERVICES LIMITED, P.O. BOX 309, UGLAND HOUSE, S. CHURCH ST, GRAND CAYMAN E9 KY1-1104 |
| Paulson International Ltd. |
10 percent owner |
C/O MAPLES CORPORATE SERVICES LIMITED, P.O. BOX 309, UGLAND HOUSE, S. CHURCH ST, GRAND CAYMAN E9 KY1-1104 |
| Paulson Partners Enhanced L.p. |
10 percent owner |
1133 AVENUE OF THE AMERICAS, NEW YORK NY 10036 |
| Paulson Enhanced Ltd |
10 percent owner |
C/O MAPLES CORPORATE SERVICES LIMITED, P.O. BOX 309, UGLAND HOUSE, S. CHURCH ST, GRAND CAYMAN E9 KY1-1104 |
| Paulson & Co. Inc. |
10 percent owner |
1133 AVENUE OF THE AMERICAS, 33RD FLOOR, NEW YORK NY 10036 |
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