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Maxxam (Maxxam) Financial Strength : 0 (As of Sep. 2009)


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What is Maxxam Financial Strength?

Maxxam 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.

Maxxam did not have earnings to cover the interest expense. Maxxam's debt to revenue ratio for the quarter that ended in Sep. 2009 was 2.87. As of today, Maxxam's Altman Z-Score is 0.00.


Competitive Comparison of Maxxam's Financial Strength

For the Real Estate Services subindustry, Maxxam'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.


Maxxam's Financial Strength Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Maxxam's Financial Strength distribution charts can be found below:

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



Maxxam 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:

Maxxam's Interest Expense for the months ended in Sep. 2009 was $-3.90 Mil. Its Operating Income for the months ended in Sep. 2009 was $-5.20 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2009 was $202.60 Mil.

Maxxam's Interest Coverage for the quarter that ended in Sep. 2009 is

Maxxam 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.

Maxxam's Debt to Revenue Ratio for the quarter that ended in Sep. 2009 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2009 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(6.3 + 202.6) / 72.8
=2.87

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.

Maxxam 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.


Maxxam  (OTCPK:MAXX) 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.

Maxxam has the Financial Strength Rank of 0.


Maxxam Financial Strength Related Terms

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


Maxxam (Maxxam) Business Description

Traded in Other Exchanges
N/A
Address
Maxxam Inc through its subsidiaries, is engaged in the residential and commercial real estate investment and development, and racing operations.
Executives
Charles E Hurwitz director, 10 percent owner, officer: Chairman of the Board & CEO 1330 POST OAK BOULEVARD, SUITE 2000, HOUSTON TX 77056
Robert J Cruikshank director 2001 KIRBY, SUITE 313, HOUSTON TX 77019
Ezra G Levin director 1330 POST OAK BLVD., SUITE 2000, HOUSTON TX 77056
Luxor Capital Group, Lp 10 percent owner 7 TIMES SQUARE, 43RD FLOOR, NEW YORK NY 10036
Luxor Capital Partners Offshore Ltd 10 percent owner C/O MAPLES CORPORATE SERVICES LTD., PO BOX 309, UGLAND HOUSE, GEORGE TOWN E9 KY1-1104
Luxor Capital Partners, Lp 10 percent owner 7 TIMES SQUARE, 43RD FLOOR, NEW YORK NY 10036
Elizabeth D Brumley officer: Controller 9800 RICHMOND AVE., SUITE 700, HOUSTON TX 77042
Lcg Holdings Llc 10 percent owner 7 TIMES SQUARE, 43RD FLOOR, NEW YORK NY 10036

Maxxam (Maxxam) Headlines

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