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LookSmart (FRA:LOKB) Financial Strength : 0 (As of Jun. 2015)


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What is LookSmart Financial Strength?

LookSmart 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.

LookSmart did not have earnings to cover the interest expense. LookSmart's debt to revenue ratio for the quarter that ended in Jun. 2015 was 0.39. As of today, LookSmart's Altman Z-Score is -81.02.


Competitive Comparison of LookSmart's Financial Strength

For the Internet Content & Information subindustry, LookSmart'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.


LookSmart's Financial Strength Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, LookSmart's Financial Strength distribution charts can be found below:

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



LookSmart 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:

LookSmart's Interest Expense for the months ended in Jun. 2015 was €-0.00 Mil. Its Operating Income for the months ended in Jun. 2015 was €-0.90 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2015 was €0.62 Mil.

LookSmart's Interest Coverage for the quarter that ended in Jun. 2015 is

LookSmart did not have earnings to cover the interest expense.

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

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

LookSmart'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
=(0.801 + 0.624) / 3.636
=0.39

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.

LookSmart has a Z-score of -81.02, 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.


LookSmart  (FRA:LOKB) 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.

LookSmart has the Financial Strength Rank of 0.


LookSmart Financial Strength Related Terms

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


LookSmart (FRA:LOKB) Business Description

Traded in Other Exchanges
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Address
LookSmart Ltd was organized in 1996 and is incorporated in the State of Delaware. The Company is a search advertising network solutions Company that provides relevant solutions for search advertising customers. It operates in a large online search advertising ecosystem serving ads that target user queries on partner sites. It operates in the middle of this ecosystem, acquiring search queries from a variety of sources and matching them with the keywords of its search advertising customers. The Companys largest category of customers has been intermediaries, the majority of which purchase clicks to sell into the affiliate networks of the large search engine providers. Another category of customers are direct advertisers and their agencies whose objective is to obtain conversions or sales from the clicks. The last category of customers is self-service advertisers that sign-up online and pays by credit card. It offers search advertising customers targeted, pay-per-click (PPC) search via a monitored search advertising distribution network using the Companys AdCenter platform technology. The Companys search advertising network includes publishers and search advertising customers, including intermediaries and direct advertising customers and their agencies as well as self-service customers in the United States and certain other countries. The Companys application programming interface (API) allows search advertising customers and their advertising agencies to connect any type of marketing or reporting software with minimal effort for easier access, management, and optimization of search advertising campaigns. It also offers publishers licensed private-label search advertiser network solutions based on its AdCenter platform technology (Publisher Solutions). Publisher Solutions consist of hosted auction-based ad serving with an ad backfill capability that allows publishers and portals to manage their advertiser relationships, distribution channels and accounts. The Companys trademarks include LookSmart. It is subject to a number of domestic state and federal laws that affect companies conducting business on the Internet.

LookSmart (FRA:LOKB) Headlines

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