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Western Asset Mortgage Capital (Western Asset Mortgage Capital) Financial Strength : 2 (As of Sep. 2023)


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What is Western Asset Mortgage Capital Financial Strength?

Western Asset Mortgage Capital 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:

Western Asset Mortgage Capital 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.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

GuruFocus does not calculate Western Asset Mortgage Capital's interest coverage with the available data. Western Asset Mortgage Capital's debt to revenue ratio for the quarter that ended in Sep. 2023 was -160.25. Altman Z-Score does not apply to banks and insurance companies.


Western Asset Mortgage Capital 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:

Western Asset Mortgage Capital's Interest Expense for the months ended in Sep. 2023 was $-36.98 Mil. Its Operating Income for the months ended in Sep. 2023 was $0.00 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was $1,969.13 Mil.

Western Asset Mortgage Capital's Interest Coverage for the quarter that ended in Sep. 2023 is

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

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

Western Asset Mortgage Capital's Debt to Revenue Ratio for the quarter that ended in Sep. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 1969.125) / -12.288
=-160.25

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.


Western Asset Mortgage Capital  (NYSE:WMC) 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.

Western Asset Mortgage Capital 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.


Western Asset Mortgage Capital Financial Strength Related Terms

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Western Asset Mortgage Capital (Western Asset Mortgage Capital) Business Description

Traded in Other Exchanges
N/A
Address
385 East Colorado Boulevard, Pasadena, CA, USA, 91101
Western Asset Mortgage Capital Corp is a specialty financial REIT company managing diversified mortgage-market investment portfolio. The corporation is externally managed by Western Asset Management Company and emphasizes on undervalued assets. It focuses on investing in, financing and managing majorly residential mortgage-backed securities, while its core focus is on Agency RMBS. The company aims to provide attractive risk-adjusted returns to its investors over the long-term across market conditions and economic cycles.
Executives
Robert W. Lehman officer: Chief Financial Officer C/O WESTERN ASSET MORTGAGE CAPITAL CORP, 385 EAST COLORADO BOULEVARD, PASADENA CA 91101
Sean O. Johnson officer: Deputy CIO C/O WESTERN ASSET MORTGAGE CAPITAL CORP., 385 EAST COLORADO BOULEVARD, PASADENA CA 91101
Greg E. Handler officer: Chief Investment Officer C/O WESTERN ASSET MORTGAGE CAPITAL CORP., 385 EAST COLORADO BOULEVARD, PASADENA CA 91101
Elliott Neumayer officer: Chief Operating Officer 385 EAST COLORADO BLVD, PASADENA CA 91101
Bonnie M. Wongtrakool director, officer: Chief Executive Officer C/O WESTERN ASSET MORTGAGE CAPITAL CORP, 385 EAST COLORADO BOULEVARD, PASADENA CA 91101
Lisa Meyer officer: Chief Financial Officer C/O NORTHSTAR REALTY FINANCE CORP., 399 PARK AVENUE, 18TH FLOOR, NEW YORK NY 10022
Morgan Donald E Iii 10 percent owner C/O BRIGADE CAPITAL MANAGEMENT, LLC, 717 FIFTH AVENUE, SUITE 1301, NEW YORK NY 10022
Brigade Capital Management, Lp 10 percent owner 399 PARK AVENUE, 16TH FLOOR, NEW YORK NY 10022
Brigade Capital Management Gp, Llc 10 percent owner 399 PARK AVENUE, 16TH FLOOR, NEW YORK NY 10022
Lisa G Quateman director C/O WESTERN ASSET MORTGAGE CAPITAL CORP., 385 EAST COLORADO BOULEVARD, PASADENA CA 91101
Jennifer Murphy officer: President and CEO LEGG MASON, INC., 100 INTERNATIONAL DRIVE, BALTIMORE MD 21202
Harris Trifon officer: Chief Investment Officer C/O WESTERN ASSET MORTGAGE CAPITAL CORP., 385 EAST COLORADO BOULEVARD, PASADENA CA 91101
Dennis Joseph Mcnamara officer: Co-Chief Investment Officer 385 E. COLORADO BLVD., PASADENA CA 91101
M Christian Mitchell director 355 S. GRAND AVE, SUITE 1750, LOS ANGELES CA 90071
Richard W Roll director C/O WESTERN ASSET MORTGAGE CAPITAL CORP, 385 EAST COLORADO BOULEVARD, PASADENA CA 91101