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Homeinns Hotel Group (Homeinns Hotel Group) Financial Strength : 0 (As of Sep. 2015)


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What is Homeinns Hotel Group Financial Strength?

Homeinns Hotel Group 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.

Homeinns Hotel Group's Interest Coverage for the quarter that ended in Sep. 2015 was 40.30. Homeinns Hotel Group's debt to revenue ratio for the quarter that ended in Sep. 2015 was 0.04. As of today, Homeinns Hotel Group's Altman Z-Score is 0.00.


Competitive Comparison of Homeinns Hotel Group's Financial Strength

For the Lodging subindustry, Homeinns Hotel Group'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.


Homeinns Hotel Group's Financial Strength Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Homeinns Hotel Group's Financial Strength distribution charts can be found below:

* The bar in red indicates where Homeinns Hotel Group's Financial Strength falls into.



Homeinns Hotel Group 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:

Homeinns Hotel Group's Interest Expense for the months ended in Sep. 2015 was $-0.8 Mil. Its Operating Income for the months ended in Sep. 2015 was $33.6 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2015 was $47.7 Mil.

Homeinns Hotel Group's Interest Coverage for the quarter that ended in Sep. 2015 is

Interest Coverage=-1*Operating Income (Q: Sep. 2015 )/Interest Expense (Q: Sep. 2015 )
=-1*33.568/-0.833
=40.30

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

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

Homeinns Hotel Group's Debt to Revenue Ratio for the quarter that ended in Sep. 2015 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2015 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 47.746) / 1097.436
=0.04

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.

Homeinns Hotel Group 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.


Homeinns Hotel Group  (NAS:HMIN) 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.

Homeinns Hotel Group has the Financial Strength Rank of 0.


Homeinns Hotel Group Financial Strength Related Terms

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Homeinns Hotel Group (Homeinns Hotel Group) Business Description

Traded in Other Exchanges
N/A
Address
Homeinns Hotel Group was incorporated in the Cayman Islands on May 2006. The Company develops and operates economy hotels across China under its "Home Inn", "Yitel" and its recently acquired "Motel 168" brands. As of December 31, 2013, the Company had 2,180 hotels in operation, including 872 leased-and-operated hotels and 1,308 franchised-and-managed hotels, with approximately 256,555 rooms located in 287 cities across China, and an additional 161 hotels under development. It competes with other economy hotel chains, such as Jinjiang Star, 7 Days Inn, Han Ting, Green Tree Inn and Super 8, as well as various regional and local economy hotel chains.

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