PWC Capital (TSX:PWC.PR.B.PFD) Financial Strength : 0 (As of Jan. 2017)

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What is PWC Capital Financial Strength?

PWC Capital 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.

GuruFocus does not calculate PWC Capital's interest coverage with the available data. PWC Capital's debt to revenue ratio for the quarter that ended in Jan. 2017 was 0.31. Altman Z-Score does not apply to banks and insurance companies.

PWC Capital 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:

PWC Capital's Interest Expense for the months ended in Jan. 2017 was C$-7.44 Mil. Its Operating Income for the months ended in Jan. 2017 was C$4.20 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2017 was C$14.10 Mil.

PWC Capital's Interest Coverage for the quarter that ended in Jan. 2017 is

Interest Coverage	=	-1	*	Operating Income (Q: Jan. 2017 )	/	Interest Expense (Q: Jan. 2017 )
	=	-1	*	4.201	/	-7.441
	=	0.56

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

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

PWC Capital's Debt to Revenue Ratio for the quarter that ended in Jan. 2017 is

Debt to Revenue Ratio	=	Total Debt (Q: Jan. 2017 )			/	Revenue
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Revenue
	=	(0	+	14.095)	/	45.728
	=	0.31

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.

Altman Z-Score does not apply to banks and insurance companies.

* 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.

PWC Capital (TSX:PWC.PR.B.PFD) 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.

PWC Capital has the Financial Strength Rank of 0.

PWC Capital Financial Strength Related Terms

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PWC Capital (TSX:PWC.PR.B.PFD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » PWC Capital Inc (TSX:PWC.PR.B.PFD) » Definitions » Financial Strength

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.versabank.com

Pacific & Western Credit Corp is a holding company. The Company's wholly-owned and main subsidiary is Pacific & Western Bank of Canada, which provides financial solutions to clients in selected niche markets. The Bank receives deposits through a diversified network of deposit brokers and is a member institution of the Canada Deposit Insurance Corporation ('CDIC'). The Bank invests these funds in loans, leases, commercial mortgages, residential development mortgages, equity and debt of corporations, and government guaranteed securities, all of which are selected to provide lower returns on equity but with limited risk of default. The Bank has two main business activities, namely deposit services and lending services. Deposit services are located in Saskatoon, Saskatchewan. Deposits, consisting of guaranteed investment certificates and daily interest savings accounts, eligible for CDIC insurance, are raised through a diversified network of deposit brokers across Canada. The Bank's business is comprised of three core lending segments, being real estate lending, public sector lending and commercial lending. The Bank's real estate lending portfolio is organized into four categories, being land and construction loans, residential term mortgages, commercial term mortgages, and insured mortgages. The Bank provides land and construction loans, residential term mortgages, commercial term mortgages, and insured mortgages.