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EBTC (Enterprise Bancorp) Financial Strength : 4 (As of Sep. 2024)


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What is Enterprise Bancorp Financial Strength?

Enterprise Bancorp has the Financial Strength Rank of 4.

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 Enterprise Bancorp's interest coverage with the available data. Enterprise Bancorp's debt to revenue ratio for the quarter that ended in Sep. 2024 was 0.81. Altman Z-Score does not apply to banks and insurance companies.


Enterprise Bancorp 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:

Enterprise Bancorp's Interest Expense for the months ended in Sep. 2024 was $-22.1 Mil. Its Operating Income for the months ended in Sep. 2024 was $0.0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was $92.3 Mil.

Enterprise Bancorp's Interest Coverage for the quarter that ended in Sep. 2024 is

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

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

Enterprise Bancorp's Debt to Revenue Ratio for the quarter that ended in Sep. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(51.4 + 92.295) / 176.64
=0.81

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.


Enterprise Bancorp  (NAS:EBTC) 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.

Enterprise Bancorp has the Financial Strength Rank of 4.


Enterprise Bancorp Financial Strength Related Terms

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


Enterprise Bancorp Business Description

Traded in Other Exchanges
N/A
Address
222 Merrimack Street, Lowell, MA, USA, 01852
Enterprise Bancorp Inc is a holding company engaged in the business of gathering deposits from the general public and investing in loans and investment securities. Through the Bank and its subsidiaries, the company offers a range of commercial, residential, and consumer loan products, deposit products, and cash management services, as well as wealth management and wealth services.
Executives
Michael T Putziger director C/O NEW HAMPSHIRE THRIFT BANCSHARES, 9 MAIN STREET, NEWPORT NH 03773
Joseph R Lussier officer: EVP-Principal Subsidiary C/O ENTERPRISE BANK, 222 MERRIMACK STREET, LOWELL MA 01852
Ken S Ansin director 390 GOODRICH ST, LUNENBURG MA 01462
Gino J Baroni director 222 MERRIMACK STREET, LOWELL MA 01852
Jacqueline F Moloney director 222 MERRIMACK STREET, LOWELL MA 01852
George L Duncan director, officer: Chief Executive Officer 222 MERRIMACK ST, LOWELL MA 01852
Stephen J Irish officer: EVP - Principal Subsidiary 222 MERRIMACK ST, LOWELL MA 01852
Ryan C Dunn officer: EVP-Principal Subsidiary C/O ENTERPRISE BANK, 222 MERRIMACK STREET, LOWELL MA 01852
Mary Jane King director 222 MERRIMACK STREET, LOWELL MA 01852
Luis M Pedroso director 222 MERRIMACK STREET, LOWELL MA 01852
Diane J Silva officer: EVP - Principal Subsidiary 222 MERRIMACK STREET, LOWELL MA 01852
Anita R Worden director C/O ENTERPRISE BANK, 222 MERRIMACK STREET, LOWELL MA 01852
John A Koutsos director 222 MERRIMACK STREET, LOWELL MA 01852
Peter Rayno officer: EVP - Principal Subsidiary C/O ENTERPRISE BANK, 222 MERRIMACK STREET, LOWELL MA 01852
Keith N Soucie officer: EVP-Principal Subsidiary C/O ENTERPRISE BANK, 222 MERRIMACK STREET, LOWELL MA 01852