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H.R.Owen (LSE:HRO) Financial Strength : 0 (As of Dec. 2013)


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What is H.R.Owen Financial Strength?

H.R.Owen 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.

H.R.Owen's Interest Coverage for the quarter that ended in Dec. 2013 was 0.87. H.R.Owen's debt to revenue ratio for the quarter that ended in Dec. 2013 was 0.13. As of today, H.R.Owen's Altman Z-Score is 0.00.


Competitive Comparison of H.R.Owen's Financial Strength

For the Specialty Retail subindustry, H.R.Owen'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.


H.R.Owen's Financial Strength Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, H.R.Owen's Financial Strength distribution charts can be found below:

* The bar in red indicates where H.R.Owen's Financial Strength falls into.



H.R.Owen 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:

H.R.Owen's Interest Expense for the months ended in Dec. 2013 was £-0.3 Mil. Its Operating Income for the months ended in Dec. 2013 was £0.3 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2013 was £0.0 Mil.

H.R.Owen's Interest Coverage for the quarter that ended in Dec. 2013 is

Interest Coverage=-1*Operating Income (Q: Dec. 2013 )/Interest Expense (Q: Dec. 2013 )
=-1*0.278/-0.321
=0.87

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

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

H.R.Owen's Debt to Revenue Ratio for the quarter that ended in Dec. 2013 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2013 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(31.996 + 0) / 253.62
=0.13

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.

H.R.Owen 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.


H.R.Owen  (LSE:HRO) 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.

H.R.Owen has the Financial Strength Rank of 0.


H.R.Owen Financial Strength Related Terms

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


H.R.Owen (LSE:HRO) Business Description

Traded in Other Exchanges
N/A
Address
H.R.Owen PLC operates a number of vehicle franchises in the prestige and specialist car market for both sales and aftersales, predominantly in the London area. It is organised into two main business segments: the sale of new and used motor vehicles and an aftersales operations consisting of the servicing of vehicles, sales of parts and bodyshop repairs. It operates retail outlets in London, Berkshire, Gloucestershire, Hertfordshire, Surrey, and Manchester, which includes fourteen sales franchises and thirteen aftersales franchises for its Aston Martin, Bentley, Bugatti, Ferrari, Lamborghini, Maserati, Pagani and Rolls-Royce marques. It also operates aftersales only franchises for Audi, BMW, Lotus and MINI. The Company operates entirely in the United Kingdom.

H.R.Owen (LSE:HRO) Headlines

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