GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Tel Instrument Electronics Corp (OTCPK:TIKK) » Definitions » Financial Strength

TIKK (Tel Instrument Electronics) Financial Strength : 5 (As of Dec. 2024)


View and export this data going back to 1994. Start your Free Trial

What is Tel Instrument Electronics Financial Strength?

Tel Instrument Electronics has the Financial Strength Rank of 5.

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.

Tel Instrument Electronics did not have earnings to cover the interest expense. Tel Instrument Electronics's debt to revenue ratio for the quarter that ended in Dec. 2024 was 0.19. As of today, Tel Instrument Electronics's Altman Z-Score is 1.26.

Competitive Comparison of Tel Instrument Electronics's Financial Strength

For the Aerospace & Defense subindustry, Tel Instrument Electronics'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.

Tel Instrument Electronics's Financial Strength Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Tel Instrument Electronics's Financial Strength distribution charts can be found below:

* The bar in red indicates where Tel Instrument Electronics's Financial Strength falls into.


;
;

Tel Instrument Electronics 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:

Tel Instrument Electronics's Interest Expense for the months ended in Dec. 2024 was $-0.03 Mil. Its Operating Income for the months ended in Dec. 2024 was $-0.58 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was $0.96 Mil.

Tel Instrument Electronics's Interest Coverage for the quarter that ended in Dec. 2024 is

Tel Instrument Electronics 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.

Tel Instrument Electronics's Debt to Revenue Ratio for the quarter that ended in Dec. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1.329 + 0.96) / 11.888
=0.19

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.

Tel Instrument Electronics has a Z-score of 1.26, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.26 is in distress zone. This implies bankruptcy 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.

Tel Instrument Electronics  (OTCPK:TIKK) 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.

Tel Instrument Electronics has the Financial Strength Rank of 5.

Tel Instrument Electronics Financial Strength Related Terms

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

Tel Instrument Electronics Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Tel Instrument Electronics Corp (OTCPK:TIKK) » Definitions » Financial Strength
Comparable Companies
XERI DUKR KITT MNTS AIRI PRZO XTIA GPUS BLIS HOVR GE RTX XPAR:AIR BA XPAR:SAF LMT LSE:RR. TDG NOC GD
Traded in Other Exchanges
N/A
Address
One Branca Road, East Rutherford, NJ, USA, 07073
Website
https://www.telinstrument.com
Tel Instrument Electronics Corp is a designer and manufacturer of avionics test and measurement solutions for commercial air transport, general aviation, and government, military aerospace, and defense markets. It designs, manufactures, and sells instruments to test and measure, and calibrates and repairs airborne navigation and communication equipment. The company's reportable segments are Avionics government and Avionics commercial. The Avionics government segment, which derives key revenue, consists of the design, manufacture, and sale of test equipment to the U.S. and foreign governments and militaries. Geographically, the company generates a majority of its revenue from the United States and the rest from international markets.
Executives
Dowling Vincent J. Jr 10 percent owner 54 LEDYARD, WEST HARTFORD CT 06117
Robert A Rice director 728 GARDEN ST, CARLSTADT NJ 07072
Joseph P Macaluso 10 percent owner, officer: Principal Accounting Officer
Stephen A Fletcher director, 10 percent owner ONE BRANCA RD, EAST RUTHERFORD NJ 07073-2121
Sadie Elizabeth Fletcher 10 percent owner ONE BRANCA RD, EAST RUTHERFORD NJ 07073-2121
Michael Wolfgang Schirmer officer: Chief Operating Officer ONE BRANCA ROAD, EAST RUTHERFORD NJ 07073
Jeff C Ohara director ONE BRANCA RD, EAST RUTHERFORD NJ 07073
George J Leon director, 10 percent owner
Chris H Allen officer: VP of Operations ONE BRANCA RD, EAST RUTHERFORD NJ 07073
Harold K Fletcher director, 10 percent owner, officer: CEO
Marc A Mastrangelo officer: Vice President-Manufacturing 728 GARDEN ST, CARLSTADT NJ 07072
Adam Rachlin officer: Vice President 728 GARDEN ST, CARLSTADT NJ 07072
Charles R Palanzo officer: COO 728 GARDEN STREET, CARLSTADT NJ 07072
Robert H Walker director C/O ROBOTIC VISION SYSTEMS INC, 486 AMHERST STREET, NASHUA NH 03063
Robert J Melnick director, officer: Vice President