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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.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.
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.
Thank you for viewing the detailed overview of Western Asset Mortgage Capital's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
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 |
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