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Providence & Worcester Railroad Co (Providence & Worcester Railroad Co) Financial Strength : 0 (As of Jun. 2016)


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What is Providence & Worcester Railroad Co Financial Strength?

Providence & Worcester Railroad Co 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.

Providence & Worcester Railroad Co's Interest Coverage for the quarter that ended in Jun. 2016 was 9.20. Providence & Worcester Railroad Co's debt to revenue ratio for the quarter that ended in Jun. 2016 was 0.15. As of today, Providence & Worcester Railroad Co's Altman Z-Score is 0.00.


Competitive Comparison of Providence & Worcester Railroad Co's Financial Strength

For the Railroads subindustry, Providence & Worcester Railroad Co'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.


Providence & Worcester Railroad Co's Financial Strength Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Providence & Worcester Railroad Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Providence & Worcester Railroad Co's Financial Strength falls into.



Providence & Worcester Railroad Co 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:

Providence & Worcester Railroad Co's Interest Expense for the months ended in Jun. 2016 was $-0.03 Mil. Its Operating Income for the months ended in Jun. 2016 was $0.23 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2016 was $4.83 Mil.

Providence & Worcester Railroad Co's Interest Coverage for the quarter that ended in Jun. 2016 is

Interest Coverage=-1*Operating Income (Q: Jun. 2016 )/Interest Expense (Q: Jun. 2016 )
=-1*0.23/-0.025
=9.20

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

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

Providence & Worcester Railroad Co's Debt to Revenue Ratio for the quarter that ended in Jun. 2016 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2016 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0.162 + 4.828) / 34.4
=0.15

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.

Providence & Worcester Railroad Co 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.


Providence & Worcester Railroad Co  (NAS:PWX) 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.

Providence & Worcester Railroad Co has the Financial Strength Rank of 0.


Providence & Worcester Railroad Co Financial Strength Related Terms

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Providence & Worcester Railroad Co (Providence & Worcester Railroad Co) Business Description

Traded in Other Exchanges
N/A
Address
Providence & Worcester Railroad Co commenced its operations in 1973. The Company is a short-line freight railroad as defined by the American Association of Railroads operating in Massachusetts, Rhode Island, Connecticut and New York. The Company is the only interstate freight carrier serving the State of Rhode Island. The Company services the international double-stack intermodal terminal facility in New England in Worcester, Massachusetts, a strategic location for regional transportation and distribution enterprises. The Company transports commodities for its customers, including automobiles, construction aggregates, iron and steel products, chemicals and plastics, lumber, scrap metals, plastic resins, cement, coal, construction and demolition debris, and processed foods and edible foodstuffs, such as corn syrup and vegetable oils. Its customers include Exxon Mobil Corporation, Ford Motor Company, Frito-Lay, Inc., Global LLP, GDF SUEZ Energy North America, International Paper Company, Lehigh Cement, Cargill, Inc., Northeast Utilities, Nucor Steel, Rawson Materials, Renewable Products Marketing Group, Subaru of New England, Tilcon Connecticut, Inc. and Toray Plastics, Inc. The Company competes with other carriers in the siting of new rail-oriented businesses in the region. The Company also competes with other modes of transportation, particularly long-haul trucking companies, for the transportation of commodities, and ocean-going vessels for the transportation of containers. The Company is subject to governmental regulation by the STB, the FRA, the Transportation Security Administration and other federal, state and local regulatory authorities with respect to certain rates and railroad operations, as well as a variety of health, safety, labor, environmental and other matters.
Executives
Daniel T Noreck officer: Treasurer and CFO 75 HAMMOND STREET, WORCESTER MA 01610
P Scott Conti director, officer: President and COO 75 HAMMOND STREET, WORCESTER MA 01610
Robert H Eder director, 10 percent owner, officer: Chief Executive Officer 5 STEEPLE STREET, #303, PROVIDENCE RI 02903
Linda Eder 10 percent owner 100 DEXTER ROAD, EAST PROVIDENCE RI 02914
Craig M Scott director 75 HAMMOND STREET, WORCESTER MA 01610
Stephen J Carlotti 10 percent owner 1500 FLEET CENTER, PROVIDENCE RI 02903
Merrill W Sherman director 131 CLARENDON STREET, BOSTON MA 02116

Providence & Worcester Railroad Co (Providence & Worcester Railroad Co) Headlines