EXCE (EXCO Resources) Financial Strength: 0 (As of Dec. 2018)

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What is EXCO Resources Financial Strength?

EXCO Resources has the Financial Strength Rank of 0.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and 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.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

EXCO Resources's Interest Coverage for the quarter that ended in Dec. 2018 was 5.82. EXCO Resources's debt to revenue ratio for the quarter that ended in Dec. 2018 was 1.11. As of today, EXCO Resources's Altman Z-Score is 0.00.


EXCO Resources  (OTCPK:EXCE) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

EXCO Resources has the Financial Strength Rank of 0.


EXCO Resources Financial Strength Related Terms


EXCE vs UPLC, AXAS, CHAP: Financial Strength Comparison

For the Oil & Gas E&P subindustry, EXCO Resources'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.


EXCO Resources Financial Strength vs Oil & Gas Industry

For the Oil & Gas industry and Energy sector, EXCO Resources's Financial Strength distribution charts can be found below:

* The bar in red indicates where EXCO Resources's Financial Strength falls into.



EXCO Resources 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:

EXCO Resources's Interest Expense for the months ended in Dec. 2018 was $-7.9 Mil. Its Operating Income for the months ended in Dec. 2018 was $46.2 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2018 was $0.0 Mil.

EXCO Resources's Interest Coverage for the quarter that ended in Dec. 2018 is

Interest Coverage=-1*Operating Income (Q: Dec. 2018 )/Interest Expense (Q: Dec. 2018 )
=-1*46.224/-7.936
=5.82

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

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

EXCO Resources's Debt to Revenue Ratio for the quarter that ended in Dec. 2018 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2018 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(473.364 + 0) / 427.444
=1.11

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.

EXCO Resources 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.


EXCO Resources Business Description

Industry EnergyOil & Gas
Address 12377 Merit Drive, Suite 1700, Dallas, TX, USA, 75251
EXCO Resources Inc is an oil and gas exploration and production company. Its operations include the exploration, acquisition, development, and production of oil and gas reserves. These activities take place in the company's onshore oilfields within the United States, and focus on shale resource plays. Its fields are located in key oil and gas areas, including Texas, Louisiana, and the Appalachian region. The Louisiana and Texas operations are the most productive fields. The majority of the company's revenue is generated from natural gas, with a smaller portion coming from oil.