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Federal-Mogul Holdings (Federal-Mogul Holdings) Financial Strength : 0 (As of Sep. 2016)


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What is Federal-Mogul Holdings Financial Strength?

Federal-Mogul Holdings 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.

Federal-Mogul Holdings's Interest Coverage for the quarter that ended in Sep. 2016 was 26.00. Federal-Mogul Holdings's debt to revenue ratio for the quarter that ended in Sep. 2016 was 0.43. As of today, Federal-Mogul Holdings's Altman Z-Score is 0.00.


Competitive Comparison of Federal-Mogul Holdings's Financial Strength

For the Auto Parts subindustry, Federal-Mogul Holdings'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.


Federal-Mogul Holdings's Financial Strength Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Federal-Mogul Holdings's Financial Strength distribution charts can be found below:

* The bar in red indicates where Federal-Mogul Holdings's Financial Strength falls into.



Federal-Mogul Holdings 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:

Federal-Mogul Holdings's Interest Expense for the months ended in Sep. 2016 was $-2 Mil. Its Operating Income for the months ended in Sep. 2016 was $52 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2016 was $2,937 Mil.

Federal-Mogul Holdings's Interest Coverage for the quarter that ended in Sep. 2016 is

Interest Coverage=-1*Operating Income (Q: Sep. 2016 )/Interest Expense (Q: Sep. 2016 )
=-1*52/-2
=26.00

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

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

Federal-Mogul Holdings's Debt to Revenue Ratio for the quarter that ended in Sep. 2016 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2016 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(174 + 2937) / 7300
=0.43

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.

Federal-Mogul Holdings 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.


Federal-Mogul Holdings  (NAS:FDML) 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.

Federal-Mogul Holdings has the Financial Strength Rank of 0.


Federal-Mogul Holdings Financial Strength Related Terms

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


Federal-Mogul Holdings (Federal-Mogul Holdings) Business Description

Traded in Other Exchanges
N/A
Address
Federal-Mogul Holdings Corp is supplier of technology and innovation in vehicle and industrial products for fuel economy, emissions reduction and safety systems. It supplies components, accessories and systems to the automotive, small engine, heavy-duty, marine, railroad, agricultural, off-road, aerospace and energy, industrial and transportation markets, including customers in both the original equipment manufacturers and services market and the replacement market. The Company operates in two segments, Powertrain and Motorparts. The Powertrain segment focuses on original equipment products for automotive, heavy duty and industrial applications. The Motorparts segment sells and distributes a broad portfolio of products in the aftermarket including more than 20 brands. It also serves original equipment manufacturers with products including braking, wipers, and a limited range of chassis. It has operations in markets including Canada, France, Germany, Italy, Japan, Spain, Sweden, the United Kingdom and the United States, and emerging markets including Argentina, Brazil, China, Czech Republic, Hungary, India, Korea, Mexico, Poland, Russia, South Africa, Thailand, Turkey and Venezuela. The Company's operations, consistent with those of the manufacturing sector in general, are subject to numerous existing and proposed laws and governmental regulations designed to protect the environment, particularly regarding plant wastes and emissions and solid waste disposal.
Executives
Carl C Icahn 10 percent owner C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH-1, SUNNY ISLES BEACH FL 33160
Rainer Jueckstock director, officer: See Remarks 27300 WEST 11 MILE ROAD, SOUTHFIELD MI 48034
Michael Nevin director C/O ICAHN CAPITAL LP, 767 FIFTH AVENUE, SUITE 4700, NEW YORK NY 10153
John Patouhas officer: VP & Chief Accounting Officer C/O FEDERAL-MOGUL HOLDINGS CORPORATION, 27300 WEST 11 MILE ROAD, SOUTHFIELD MI 48034
Louis Pastor director C/O XEROX CORPORATION, 201 MERRITT 7, NORWALK CT 06851
Mather Courtney director C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH, SUNNY ISLES FL 33160
Jerome Rouquet officer: VP, Controller & CAO 26555 NORTHWESTERN HIGHWAY, SOUTHFIELD MI 48034
Brett D Pynnonen officer: Sr VP, Genl Counsel & Secy 26555 NORTHWESTERN HIGHWAY, SOUTHFIELD MI 48033
Kevin P Freeland officer: See Remarks 5008 AIRPORT RD, ROANOKE VA 24012
Hunter Clark Gary director C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH, SUNNY ISLES FL 33160
Michael T Broderick officer: CEO, Aftermarket Division 26555 NORTHWESTERN HIGHWAY, SOUTHFIELD MI 48033
Sunghwan Cho director C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH, SUNNY ISLES FL 33160
Alan Haughie officer: Senior VP & CFO 860 RIDGE LAKE BLVD., MEMPHIS TN 38120
Jean Brunol officer: SVP, Business & Ope Strategy 26555 NORTHWESTERN HIGHWAY SOUTHFIELD MI 48034
Ramzi Hermiz officer: SVP, Vehicle Safety & Pro. 880 STEEL DRIVE VALLEY CITY OH 44280

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