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Lincoln Educational Services (Lincoln Educational Services) Financial Strength : 7 (As of Dec. 2023)


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What is Lincoln Educational Services Financial Strength?

Lincoln Educational Services has the Financial Strength Rank of 7.

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.

Lincoln Educational Services's Interest Coverage for the quarter that ended in Dec. 2023 was 32.84. Lincoln Educational Services's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.28. As of today, Lincoln Educational Services's Altman Z-Score is 3.00.


Competitive Comparison of Lincoln Educational Services's Financial Strength

For the Education & Training Services subindustry, Lincoln Educational Services'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.


Lincoln Educational Services's Financial Strength Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Lincoln Educational Services's Financial Strength distribution charts can be found below:

* The bar in red indicates where Lincoln Educational Services's Financial Strength falls into.



Lincoln Educational Services 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:

Lincoln Educational Services's Interest Expense for the months ended in Dec. 2023 was $-0.3 Mil. Its Operating Income for the months ended in Dec. 2023 was $9.0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $105.0 Mil.

Lincoln Educational Services's Interest Coverage for the quarter that ended in Dec. 2023 is

Interest Coverage=-1*Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*8.966/-0.273
=32.84

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

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

Lincoln Educational Services's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(11.807 + 104.979) / 410.088
=0.28

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.

Lincoln Educational Services has a Z-score of 3.00, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3 is strong.

* 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.


Lincoln Educational Services  (NAS:LINC) 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.

Lincoln Educational Services has the Financial Strength Rank of 7.


Lincoln Educational Services Financial Strength Related Terms

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


Lincoln Educational Services (Lincoln Educational Services) Business Description

Traded in Other Exchanges
Address
14 Sylvan Way, Suite A, Parsippany, NJ, USA, 07054
Lincoln Educational Services Corp provides diversified career-oriented post-secondary education to high school graduates and working adults. The company offers programs in automotive technology, skilled trades, healthcare services, hospitality services and business and information technology. Its business is organized into three reportable business segments: Transportation and Skilled Trades, Healthcare and Other Professions (HOPS), and Transitional. It derives most of the revenue from the Transportation and Skilled Trades segment which offers academic programs mainly in the career-oriented disciplines of transportation and skilled trades such as automotive, diesel, HVAC, welding, and manufacturing.
Executives
Burke James J Jr director C/O ANNTAYLOR STORES CORP, 7 TIMES SQUARE, 15TH FLOOR, NEW YORK NY 10036
J Barry Morrow director COLLEGIATE FUNDING SERVICES, 100 RIVERSIDE PARKWAY, FREDERICKSBURG VA 22406
Juniper Investment Company, Llc 10 percent owner 555 MADISON AVENUE, 24TH FLOOR, NEW YORK NY 10022-3315
Ronald Edward Harbour director C/O SPARTAN MOTORS INC, 1541 REYNOLDS ROAD, CHARLOTTE MI 48813
Brian K Meyers officer: CFO and Treasurer C/O LINCOLN EDUCATIONAL SERVICES CORPORA, 200 EXECUTIVE DR., STE. 340, WEST ORANGE NJ 07052
Kevin M Carney director 12735 GRAN BAY PARKWAY WEST, BUILDING 200, JACKSONVILLE FL 32258
Scott M Shaw officer: Executive Vice President C/O LINCOLN EDUCATIONAL SERVICES CORP, 200 EXECUTIVE DRIVE, SUITE 340, WEST ORANGE NJ 07052
Chad D Nyce officer: Chief Innovation Officer C/O LINCOLN EDUCATIONAL SERVICES CORPORA, 200 EXECUTIVE DR., STE 340, WEST ORANGE NJ 07052
Sylvia Jean Young director C/O LINCOLN EDUCATIONAL SERVICES CORPORA, 14 SYLVAN WAY, STE. A, PARSIPPANY NJ 07054
Juniper Targeted Opportunity Fund, L.p. 10 percent owner 555 MADISON AVENUE, 24TH FLOOR, NEW YORK NY 10022
Felecia J. Pryor director 3850 W. HAMLIN ROAD, AUBURN HILLS MI 48326
Michael A Plater director C/O LINCOLN EDUCATIONAL SERVICES CORP., 200 EXECUTIVE DRIVE, SUITE 340, WEST ORANGE NJ 07052
Carlton Rose director C/O LINCOLN EDUCATIONAL SERVICES CORPORA, 200 EXECUTIVE DRIVE, SUITE 340, WEST ORANGE NJ 07052
Stephen M Buchenot officer: Group VP of Operations C/O LINCOLN EDUCATIONAL SERVICES CORP., 200 EXECUTIVE DRIVE, SUITE 340, WEST ORANGE NJ 07052
Celia Currin director C/O LINCOLN EDUCATIONAL SERVICES CORP, 200 EXECUTIVE DRIVE, SUITE 340, WEST ORANGE NJ 07052