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Affinity Education Group (FRA:A0J) Financial Strength : 0 (As of Jun. 2015)


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What is Affinity Education Group Financial Strength?

Affinity Education Group 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.

Affinity Education Group's Interest Coverage for the quarter that ended in Jun. 2015 was 0.87. Affinity Education Group's debt to revenue ratio for the quarter that ended in Jun. 2015 was 0.20. As of today, Affinity Education Group's Altman Z-Score is 0.00.


Competitive Comparison of Affinity Education Group's Financial Strength

For the Personal Services subindustry, Affinity Education Group'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.


Affinity Education Group's Financial Strength Distribution in the Personal Services Industry

For the Personal Services industry and Consumer Cyclical sector, Affinity Education Group's Financial Strength distribution charts can be found below:

* The bar in red indicates where Affinity Education Group's Financial Strength falls into.



Affinity Education Group 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:

Affinity Education Group's Interest Expense for the months ended in Jun. 2015 was €-0.9 Mil. Its Operating Income for the months ended in Jun. 2015 was €0.8 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2015 was €23.3 Mil.

Affinity Education Group's Interest Coverage for the quarter that ended in Jun. 2015 is

Interest Coverage=-1*Operating Income (Q: Jun. 2015 )/Interest Expense (Q: Jun. 2015 )
=-1*0.772/-0.89
=0.87

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

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

Affinity Education Group's Debt to Revenue Ratio for the quarter that ended in Jun. 2015 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2015 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0.273 + 23.321) / 119.678
=0.20

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.

Affinity Education Group 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.


Affinity Education Group  (FRA:A0J) 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.

Affinity Education Group has the Financial Strength Rank of 0.


Affinity Education Group Financial Strength Related Terms

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Affinity Education Group (FRA:A0J) Business Description

Traded in Other Exchanges
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Address
Affinity Education Group Ltd was incorporated on 21st May, 2013. The Company provides education and care to children aged six weeks to 12 years. Provision of these services includes long day care, before and after school care and occasional care. Its segments include Long day care centers, Outside school-hours care, Family day care, and Occasional care. Long day care centers are set up to primarily offer care to below school age children with working parents. The care can be both full-and-part time. Outside school-hours care provides before and after school short-term care to children of primary school age. Vacation care is also considered part of this segment, providing child care services to parents during school holidays. Family day care is the only area of child care approved under the National Quality Framework that takes place outside of a center, with care provided in the home of an approved educator. This type of care can be all day, part time, occasional or outside school hours. Occasional care offers child care services for children on a casual basis. Centers offering occasional services are primarily set up to provide flexibility to parents with irregular working hours or short-term needs. As with family day care, occasional care is a capped program.

Affinity Education Group (FRA:A0J) Headlines

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