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American Community Newspapers (American Community Newspapers) Financial Strength : 0 (As of Jun. 2008)


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What is American Community Newspapers Financial Strength?

American Community Newspapers 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.

American Community Newspapers's Interest Coverage for the quarter that ended in Jun. 2008 was 0.41. American Community Newspapers's debt to revenue ratio for the quarter that ended in Jun. 2008 was 2.08. As of today, American Community Newspapers's Altman Z-Score is 0.00.


Competitive Comparison of American Community Newspapers's Financial Strength

For the Publishing subindustry, American Community Newspapers'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.


American Community Newspapers's Financial Strength Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, American Community Newspapers's Financial Strength distribution charts can be found below:

* The bar in red indicates where American Community Newspapers's Financial Strength falls into.



American Community Newspapers 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:

American Community Newspapers's Interest Expense for the months ended in Jun. 2008 was $-3.36 Mil. Its Operating Income for the months ended in Jun. 2008 was $1.39 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2008 was $0.00 Mil.

American Community Newspapers's Interest Coverage for the quarter that ended in Jun. 2008 is

Interest Coverage=-1*Operating Income (Q: Jun. 2008 )/Interest Expense (Q: Jun. 2008 )
=-1*1.389/-3.363
=0.41

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

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

American Community Newspapers's Debt to Revenue Ratio for the quarter that ended in Jun. 2008 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2008 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(143.317 + 0) / 68.844
=2.08

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.

American Community Newspapers 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.


American Community Newspapers  (OTCPK:ACNI) 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.

American Community Newspapers has the Financial Strength Rank of 0.


American Community Newspapers Financial Strength Related Terms

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


American Community Newspapers (American Community Newspapers) Business Description

Traded in Other Exchanges
N/A
Address
14875 Landmark Boulevard, Suite 110, Addison, TX, USA, 75254
American Community Newspapers Inc is a community newspaper publisher in the United States, operating within four major U.S. markets.
Executives
Rachesky Mark H Md 10 percent owner 40 WEST 57TH STREET, 24TH FLOOR, NEW YORK NY 10019
Mhr Fund Management Llc 10 percent owner 1345 AVENUE OF THE AMERICAS,, 42ND FLOOR, NEW YORK NY 10105
Mhr Advisors Llc 10 percent owner
Marilyn Rubenstein 10 percent owner
Woodland Services Corp 10 percent owner
Israel A Englander other: May be deemed as group member. C/O MILLENNIUM MANAGEMENT LLC, 399 PARK AVENUE, NEW YORK NY 10022
Millenco, L.l.c. 10 percent owner C/O MILLENNIUM MANAGEMENT LLC, 666 FIFTH AVENUE, 8TH FLOOR, NEW YORK NY 10103
Millennium Management Llc other: May be deemed as group member. 399 PARK AVENUE, NEW YORK NY 10022
Barry Rubenstein 10 percent owner 68 WHEATLEY RD, BROOKVILLE NY 11545

American Community Newspapers (American Community Newspapers) Headlines

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