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ARI Network Services (ARI Network Services) Financial Strength : 0 (As of Apr. 2017)


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What is ARI Network Services Financial Strength?

ARI Network Services 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.

ARI Network Services's Interest Coverage for the quarter that ended in Apr. 2017 was 7.44. ARI Network Services's debt to revenue ratio for the quarter that ended in Apr. 2017 was 0.29. As of today, ARI Network Services's Altman Z-Score is 0.00.


Competitive Comparison of ARI Network Services's Financial Strength

For the Software - Application subindustry, ARI Network Services'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.


ARI Network Services's Financial Strength Distribution in the Software Industry

For the Software industry and Technology sector, ARI Network Services's Financial Strength distribution charts can be found below:

* The bar in red indicates where ARI Network Services's Financial Strength falls into.



ARI Network Services 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:

ARI Network Services's Interest Expense for the months ended in Apr. 2017 was $-0.20 Mil. Its Operating Income for the months ended in Apr. 2017 was $1.49 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Apr. 2017 was $12.62 Mil.

ARI Network Services's Interest Coverage for the quarter that ended in Apr. 2017 is

Interest Coverage=-1*Operating Income (Q: Apr. 2017 )/Interest Expense (Q: Apr. 2017 )
=-1*1.487/-0.2
=7.44

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

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

ARI Network Services's Debt to Revenue Ratio for the quarter that ended in Apr. 2017 is

Debt to Revenue Ratio=Total Debt (Q: Apr. 2017 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(2.987 + 12.616) / 53.7
=0.29

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.

ARI Network Services 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.


ARI Network Services  (NAS:ARIS) 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.

ARI Network Services has the Financial Strength Rank of 0.


ARI Network Services Financial Strength Related Terms

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


ARI Network Services (ARI Network Services) Business Description

Traded in Other Exchanges
N/A
Address
ARI Network Services Inc was incorporated in Wisconsin in 1981. The Company creates software-as-a-service and data-as-a-service solutions that help equipment manufacturers, distributors and dealers in selected vertical markets Sell More Stuff!TM online and in-store. Its SaaS and DaaS solutions include eCommerce-enabled websites, which provide a web presence for dealers and serve as a platform for driving leads and eCommerce sales, eCatalogs, which drive sales of inventory and PG&A both online and within the dealership, and lead management software designed to increase sales for dealers through more efficient management and improved closure of leads. Its SaaS and DaaS solutions are sold through its internal sales force and are comprised of recurring hosting, license and eCatalog subscriptions. Customers typically sign annual, auto-renewing contracts. Its eCommerce-enabled websites provide consumers with information about a dealership and its product lines and allow consumers to obtain information on whole goods and purchase PG&A through the dealers website 24 hours a day, 7 days a week. Its website solutions are tailored to each of the vertical markets it serves and tightly integrated with its electronic library of inventory and PG&A content. The Company also offers a mobile solution that allows dealers websites to be fully functional on smart mobile phones. Its eCatalog solutions, which encompass its PartSmart, PartSmart Web and PartStream products, leverage its library of electronic whole goods and PG&A content to allow distributors and dealers to view and interact with this information to efficiently support the sales and service of equipment. Its SaaS solution, Footsteps, is designed to efficiently manage and nurture generated leads, increasing conversion rates and ultimately revenues for its customers. It also offers solutions, which include search engine marketing, software and website customization services, website hosting, and document transfer and communication services. Competition for its products and services varies by product and by vertical market. In eCatalogs, it competes with Snap-on Business Solutions, which designs and delivers eCatalogs, accessory sales tools, and manufacturer network development services, mainly to the automotive, powersports, OPE, construction, agriculture and mining markets.
Executives
Newell Robert Y Iv director 2309 BERING DRIVE, SAN JOSE CA 95131
Roy W Olivier director, officer: President and CEO 11425 WEST LAKE PARK DRIVE, SUITE 900, MILWAUKEE WI 53224
Chad J. Cooper director 10850 WEST PARK PLACE, SUITE 1200, MILWAUKEE WI 53224
Wynnefield Partners Small Cap Value Lp 10 percent owner 450 SEVENTH AVENUE, SUITE 509, NEW YORK NY 10123
Nelson Obus 10 percent owner
Wynnefield Capital Management Llc 10 percent owner 450 SEVENTH AVE, STE 509, NEW YORK NY 10123
Wynnefield Partners Small Cap Value Lp I 10 percent owner 450 SEVENTH AVENUE, SUITE 509, NEW YORK NY 10123
Joshua Landes 10 percent owner
Wynnefield Capital Inc 10 percent owner 450 SEVENTH AVE, STE 509, NEW YORK NY 10123
Wynnefield Small Cap Value Offshore Fund Ltd 10 percent owner 450 SEVENTH AVE, STE 509, NEW YORK NY 10123
Dwight Mamanteo director C/O GERSTEN SAVAGE LLP 600 LEXINGTON AVE., 9TH FLOOR NEW YORK NY 10022
12 West Capital Management Lp 10 percent owner 475 TENTH AVENUE, 14TH FLOOR, NEW YORK NY 10018