TSGL (The Staffing Group) Financial Strength: 0 (As of Dec. 2016)

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What is The Staffing Group Financial Strength?

The Staffing Group has the Financial Strength Rank of 0.

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.

The Staffing Group did not have earnings to cover the interest expense. The Staffing Group's debt to revenue ratio for the quarter that ended in Dec. 2016 was 0.42. As of today, The Staffing Group's Altman Z-Score is 0.00.


The Staffing Group  (OTCPK:TSGL) 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.

The Staffing Group has the Financial Strength Rank of 0.


The Staffing Group Financial Strength Related Terms


The Staffing Group Financial Strength Competitor Comparison

For the Staffing & Employment Services subindustry, The Staffing Group'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.


The Staffing Group Financial Strength vs Business Services Industry

For the Business Services industry and Industrials sector, The Staffing Group's Financial Strength distribution charts can be found below:

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



The Staffing Group 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:

The Staffing Group's Interest Expense for the months ended in Dec. 2016 was $-0.26 Mil. Its Operating Income for the months ended in Dec. 2016 was $-0.13 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2016 was $0.59 Mil.

The Staffing Group's Interest Coverage for the quarter that ended in Dec. 2016 is

The Staffing Group 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.

The Staffing Group's Debt to Revenue Ratio for the quarter that ended in Dec. 2016 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2016 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1.46 + 0.591) / 4.904
=0.42

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.

The Staffing Group 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.


The Staffing Group Business Description

Address 125 Townpark Drive, Suite 300, Kennesaw, GA, USA, 30144
The Staffing Group Ltd operates as a service provider, in the business of providing temporary staffing solutions. It provides general laborers to construction, light industrial, refuse, retail, and hospitality businesses and recruit, hire, train and manage skilled workers. Further, the company is executing an aggressive buy-and-build strategy through the acquisition and integration of small to medium-sized staffing businesses. Geographically the activities are carried out through the region of US, and it derives revenue when the staffing services are rendered.