HTSPRA.PFD (Hatteras Financial) Financial Strength : 0 (As of Mar. 2016)

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What is Hatteras Financial Financial Strength?

Hatteras Financial 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.

GuruFocus does not calculate Hatteras Financial's interest coverage with the available data. Hatteras Financial's debt to revenue ratio for the quarter that ended in Mar. 2016 was 0.80. Altman Z-Score does not apply to banks and insurance companies.

Hatteras Financial 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:

Hatteras Financial's Interest Expense for the months ended in Mar. 2016 was $-22.75 Mil. Its Operating Income for the months ended in Mar. 2016 was $-71.17 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2016 was $60.55 Mil.

Hatteras Financial's Interest Coverage for the quarter that ended in Mar. 2016 is

Hatteras Financial 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.

Hatteras Financial's Debt to Revenue Ratio for the quarter that ended in Mar. 2016 is

Debt to Revenue Ratio	=	Total Debt (Q: Mar. 2016 )			/	Revenue
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Revenue
	=	(63.615	+	60.55)	/	155.084
	=	0.80

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.

Hatteras Financial (NYSE:HTSPRA.PFD) 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.

Hatteras Financial has the Financial Strength Rank of 0.

Hatteras Financial Financial Strength Related Terms

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

Hatteras Financial Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Hatteras Financial Corp (NYSE:HTSPRA.PFD) » Definitions » Financial Strength

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.hatfin.com

Hatteras Financial Corp a Maryland Corp was incorporated on September 19, 2007. The Company is an externally-managed mortgage REIT that invests primarily in single-family residential mortgage real estate assets. In acquiring agency securities, the Company competes with mortgage REITs, mortgage finance and specialty finance companies, savings and loan associations, banks, mortgage bankers, insurance companies, mutual funds, institutional investors, investment banking firms, other lenders, governmental bodies and other entities.

Executives

Michael P Lau	officer: President of Wind River	751 W. FOURTH STREET, SUITE 400, WINSTON-SALEM NC 27101
Nutt William V Jr	director	751 W. FOURTH STREET, SUITE 400, WINSTON SALEM NC 27101
Vicki W Mcelreath	director	PO BOX 33068, CHARLOTTE NC 28233
Jeffrey Douglas Miller	director	3100 SMOKETREE COURT, SUITE 600, RALEIGH NC 27604
Michael R Hough	director, officer: Chief Executive Officer	751 W. FOURTH STREET, SUITE 400, WINSTON SALEM NC 27101
Benjamin M Hough	director, officer: President and COO	751 W. FOURTH STREET, SUITE 400, WINSTON SALEM NC 27101
Thomas D Wren	director	C/O RAIT FINANCIAL TRUST, 2 LOGAN SQUARE, 100 N. 18TH ST., 23RD FL, PHILADELPHIA PA 19103
David W Berson	director	751 W. FOURTH STREET, SUITE 400, WINSTON SALEM NC 27101
Boos Frederick J Ii	officer: EVP and Co-CIO	751 W. FOURTH STREET, SUITE 400, WINSTON SALEM NC 27101
Kenneth A Steele	officer: CFO, Treasurer and Secretary	751 W. FOURTH STREET, SUITE 400, WINSTON SALEM NC 27101
Ira G Kawaller	director	751 W. FOURTH STREET, SUITE 400, WINSTON SALEM NC 27101
Gibbs William H Jr	officer: EVP and Co-CIO	110 OAKWOOD DRIVE, SUITE 340, WINSTON SALEM NC 27103