Eltek ASA (LTS:0O6B) Financial Strength : 0 (As of Dec. 2014)

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What is Eltek ASA Financial Strength?

Eltek ASA 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.

Eltek ASA did not have earnings to cover the interest expense. Eltek ASA's debt to revenue ratio for the quarter that ended in Dec. 2014 was 0.22. As of today, Eltek ASA's Altman Z-Score is 0.00.

Competitive Comparison of Eltek ASA's Financial Strength

For the Specialty Industrial Machinery subindustry, Eltek ASA'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.

Eltek ASA's Financial Strength Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Eltek ASA's Financial Strength distribution charts can be found below:

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

Eltek ASA 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:

Eltek ASA's Interest Expense for the months ended in Dec. 2014 was kr-29 Mil. Its Operating Income for the months ended in Dec. 2014 was kr-10 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2014 was kr763 Mil.

Eltek ASA's Interest Coverage for the quarter that ended in Dec. 2014 is

Eltek ASA 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.

Eltek ASA's Debt to Revenue Ratio for the quarter that ended in Dec. 2014 is

Debt to Revenue Ratio	=	Total Debt (Q: Dec. 2014 )			/	Revenue
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Revenue
	=	(183.7	+	762.6)	/	4271.6
	=	0.22

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.

Eltek ASA 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.

Eltek ASA (LTS:0O6B) 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.

Eltek ASA has the Financial Strength Rank of 0.

Eltek ASA Financial Strength Related Terms

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

Eltek ASA (LTS:0O6B) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Eltek ASA (LTS:0O6B) » Definitions » Financial Strength

Traded in Other Exchanges

N/A

Address

Website

http://www.eltek.com

Eltek Power Systems AS was incorporated on January 1, 1971. The Company is a supplier to the telecommunication industry. The Company develops, manufactures & markets power systems & solutions for mission critical applications within telecommunications & data centers, and for the power utilities, railway & metro, & marine & offshore industries.

Eltek ASA (LTS:0O6B) Headlines

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