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ITT Educational Services (ITT Educational Services) Financial Strength : 0 (As of Jun. 2016)


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What is ITT Educational Services Financial Strength?

ITT Educational Services 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.

ITT Educational Services's Interest Coverage for the quarter that ended in Jun. 2016 was 2.41. ITT Educational Services's debt to revenue ratio for the quarter that ended in Jun. 2016 was 0.25. As of today, ITT Educational Services's Altman Z-Score is 0.00.


Competitive Comparison of ITT Educational Services's Financial Strength

For the Education & Training Services subindustry, ITT Educational Services'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.


ITT Educational Services's Financial Strength Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, ITT Educational Services's Financial Strength distribution charts can be found below:

* The bar in red indicates where ITT Educational Services's Financial Strength falls into.



ITT Educational Services 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:

ITT Educational Services's Interest Expense for the months ended in Jun. 2016 was $-6.1 Mil. Its Operating Income for the months ended in Jun. 2016 was $14.8 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2016 was $114.7 Mil.

ITT Educational Services's Interest Coverage for the quarter that ended in Jun. 2016 is

Interest Coverage=-1*Operating Income (Q: Jun. 2016 )/Interest Expense (Q: Jun. 2016 )
=-1*14.762/-6.136
=2.41

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

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

ITT Educational Services's Debt to Revenue Ratio for the quarter that ended in Jun. 2016 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2016 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(64.749 + 114.711) / 705.296
=0.25

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.

ITT Educational Services 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.


ITT Educational Services  (OTCPK:ESINQ) 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.

ITT Educational Services has the Financial Strength Rank of 0.


ITT Educational Services Financial Strength Related Terms

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


ITT Educational Services (ITT Educational Services) Business Description

Traded in Other Exchanges
N/A
Address
13000 North Meridian Street, Carmel, IN, USA, 46032-1404
ITT Educational Services Inc is a United States based proprietary provider of postsecondary degree programs in the United States based on revenue and student enrollment. The company provides technology-oriented undergraduate and graduate degree programs through its accredited postsecondary institutions, ITT Technical Institutes and Daniel Webster College, to help students develop skills and knowledge that can be used to pursue career opportunities in a variety of fields.
Executives
Tarasi Rocco F Iii officer: EVP, Chief Financial Officer C/O ITT EDUCATIONAL SERVICES INC, 13000 NORTH MERIDIAN STREET, CARMEL IN 46032
June M Mccormack officer: EVP & President Online Div 13000 NORTH MERIDIAN STREET, CARMEL IN 46032
Brown C David Ii director 3000 GALLERIA TOWER, STE 1000, BIRMINGHAM AL 35244
Thomas I Morgan director 30541 CARNEY CREEK ROAD, BIGFORK MT 59911
Joanna T Lau director 30 MONUMENT SQUARE, SUITE 220, CONCORD MA 01742
Ryan L Roney officer: EVP,Chief Admin&Legal Officer 1541 REYNOLDS ROAD, CHARLOTTE MI 48813
Richard C Blum & Associates Inc 10 percent owner 909 MONTGOMERY STREET, SUITE 400, SAN FRANCISCO CA 94133
Blum Capital Partners Lp 10 percent owner 909 MONTGOMERY STREET, SUITE 400, SAN FRANCISCO CA 94133
Blum Strategic Gp Iii, L.l.c. 10 percent owner 909 MONTGOMERY STREET, SUITE 400, SAN FRANCISCO CA 94133
Blum Strategic Gp Iv, L.l.c. 10 percent owner 909 MONTOGOMERY STREET, SUITE 400, SAN FRANCISCO CA 94133
Saddlepoint Partners Gp, L.l.c. 10 percent owner 909 MONTGOMERY STREET, SUITE 400, SAN FRANCISCO CA 94133
Jeffrey R Cooper officer: SVP, Chief Compliance Officer 231 N. MARTINGALE ROAD, SCHAUMBURG IL 60173
Blum Strategic Gp Ii Llc 10 percent owner 909 MONTGOMERY STREET, SUITE 400, SAN FRANCISCO CA 94133
Rand V Araskog director -, 125 WORTH AVENUE, SUITE 300, PALM BEACH FL 33480
Richard C Blum 10 percent owner BLUM CAPITAL PARTNERS, LP, 909 MONTGOMERY STREET, SUITE 400, SAN FRANCISCO CA 94133

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