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Regional Management has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Regional Management Corp displays poor financial strength. Usually, this is caused by too much debt for the company.
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.GuruFocus does not calculate Regional Management's interest coverage with the available data. Regional Management's debt to revenue ratio for the quarter that ended in Dec. 2023 was 2.88. Altman Z-Score does not apply to banks and insurance companies.
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:
Regional Management's Interest Expense for the months ended in Dec. 2023 was $-17.5 Mil. Its Operating Income for the months ended in Dec. 2023 was $0.0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $1,186.9 Mil.
Regional Management's Interest Coverage for the quarter that ended in Dec. 2023 is
The higher the ratio, the stronger the company's financial strength is.
2. Debt to revenue ratio. The lower, the better.
Regional Management'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 | |
= | (244.94 | + | 1186.872) | / | 496.596 | |
= | 2.88 |
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.
Altman Z-Score does not apply to banks and insurance companies.
* 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.
Regional Management (NYSE:RM) 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.
Regional Management has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Thank you for viewing the detailed overview of Regional Management's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
Roel C Campos | director | 509 WEST BUTLER ROAD, GREENVILLE SC 29607 |
John D. Schachtel | officer: EVP and COO | 979 BATESVILLE ROAD, SUITE B, GREER SC 29651 |
Basswood Financial Fund, L.p. | director, 10 percent owner, other: Director-by-Deputization | 645 MADISON AVENUE, 10TH FLOOR, NEW YORK NY 10022 |
Basswood Capital Management, L.l.c. | director, 10 percent owner, other: Director-by-Deputization | 645 MADISON AVENUE, 10TH FLOOR, NEW YORK NY 10022 |
Basswood Financial Fund, Inc. | director, 10 percent owner, other: Director-by-Deputization | 3RD FL., HARBOUR CENTRE, P.O. BOX 61, GEORGE TOWN E9 KY1-1102 |
Robert William Beck | officer: EVP and CFO | 979 BATESVILLE ROAD, SUITE B, GREER SC 29651 |
Sandra K. Johnson | director | 979 BATESVILLE ROAD, SUITE B, GREER SC 29651 |
Matthew A Lindenbaum | director, 10 percent owner | 645 MADISON AVENUE, 10TH FLOOR, NEW YORK NY 10022 |
Basswood Opportunity Fund Inc | director, 10 percent owner, other: Director-by-Deputization | 645 MADISON AVE, 10TH FL, NEW YORK NY 10017 |
Basswood Financial Long Only Fund, L.p. | director, 10 percent owner, other: Director-by-Deputization | 645 MADISON AVENUE, 10TH FL., NEW YORK NY 10022 |
Jonathan David Brown | director | C/O BASSWOOD CAPITAL MANAGEMENT, 645 MADISON AVENUE, 10TH FLOOR, NEW YORK NY 10022 |
Basswood Partners, L.l.c. | director, 10 percent owner, other: Director-by-Deputization | 645 MADISON AVENUE, 10TH FL, NEW YORK NY 10022 |
Bennett D Lindenbaum | director, 10 percent owner, other: Director-by-Deputization | 645 MADISON AVENUE, 10TH FLOOR, NEW YORK NY 10022 |
Basswood Opportunity Partners, L.p. | director, 10 percent owner, other: Director-by-Deputization | BASSWOOD CAPITAL MANAGEMENT LLC, 645 MADISON AVENUE, NEW YORK NY 10022 |
Philip V Bancroft | director |
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