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Metal Storm (Metal Storm) Financial Strength : 0 (As of Dec. 2011)


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What is Metal Storm Financial Strength?

Metal Storm 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.

Metal Storm did not have earnings to cover the interest expense. Metal Storm's debt to revenue ratio for the quarter that ended in Dec. 2011 was 15.15. As of today, Metal Storm's Altman Z-Score is 0.00.


Competitive Comparison of Metal Storm's Financial Strength

For the Aerospace & Defense subindustry, Metal Storm'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.


Metal Storm's Financial Strength Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Metal Storm's Financial Strength distribution charts can be found below:

* The bar in red indicates where Metal Storm's Financial Strength falls into.



Metal Storm 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:

Metal Storm's Interest Expense for the months ended in Dec. 2011 was $-2.80 Mil. Its Operating Income for the months ended in Dec. 2011 was $-8.00 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2011 was $0.91 Mil.

Metal Storm's Interest Coverage for the quarter that ended in Dec. 2011 is

Metal Storm did not have earnings to cover the interest expense.

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

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

Metal Storm's Debt to Revenue Ratio for the quarter that ended in Dec. 2011 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2011 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(19.298 + 0.911) / 1.334
=15.15

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.

Metal Storm 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.


Metal Storm  (OTCPK:MTSXY) 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.

Metal Storm has the Financial Strength Rank of 0.


Metal Storm Financial Strength Related Terms

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


Metal Storm (Metal Storm) Business Description

Traded in Other Exchanges
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Address
Metal Storm Ltd is incorporated under the laws of Australia on April 13, 1994. The company is a defence technology company engaged in the development of electronically initiated ballistics systems using its stacked round technology. Its technology is an electronically initiated, stacked projectile system which removes the mechanical steps required to fire a conventional weapon. Effectively, the only parts that move in Metal Storm's technology are the projectiles contained within the barrels. Multiple projectiles are stacked in a barrel, each separated by a propellant load. Its products include 3GL - 3 shot grenade launcher, FireStorm, MAUL, Redback, Munitions and Component weapon systems. The company also provides Research and Development as well as Consulting and Integration Services.

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