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EarthLink Holdings (EarthLink Holdings) Financial Strength : 0 (As of Dec. 2016)


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What is EarthLink Holdings Financial Strength?

EarthLink Holdings 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.

EarthLink Holdings's Interest Coverage for the quarter that ended in Dec. 2016 was 0.43. EarthLink Holdings's debt to revenue ratio for the quarter that ended in Dec. 2016 was 0.48. As of today, EarthLink Holdings's Altman Z-Score is 0.00.


Competitive Comparison of EarthLink Holdings's Financial Strength

For the Telecom Services subindustry, EarthLink Holdings'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.


EarthLink Holdings's Financial Strength Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, EarthLink Holdings's Financial Strength distribution charts can be found below:

* The bar in red indicates where EarthLink Holdings's Financial Strength falls into.



EarthLink Holdings 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:

EarthLink Holdings's Interest Expense for the months ended in Dec. 2016 was $-8.9 Mil. Its Operating Income for the months ended in Dec. 2016 was $3.8 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2016 was $437.5 Mil.

EarthLink Holdings's Interest Coverage for the quarter that ended in Dec. 2016 is

Interest Coverage=-1*Operating Income (Q: Dec. 2016 )/Interest Expense (Q: Dec. 2016 )
=-1*3.784/-8.901
=0.43

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

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

EarthLink Holdings'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
=(4.444 + 437.458) / 920.52
=0.48

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.

EarthLink Holdings 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.


EarthLink Holdings  (NAS:ELNK) 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.

EarthLink Holdings has the Financial Strength Rank of 0.


EarthLink Holdings Financial Strength Related Terms

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


EarthLink Holdings (EarthLink Holdings) Business Description

Traded in Other Exchanges
N/A
Address
EarthLink Holdings Corp was incorporated on December 3, 2013 as a Delaware corporation in connection with the Holding Company Reorganization. On December 31, 2013, through the creation of a new holding company structure, EarthLink, Inc. merged with EarthLink, LLC, which became a wholly-owned subsidiary of a new publicly traded parent company, EarthLink Holdings Corp. The Company together with its subsidiaries provides managed network, security and cloud services to business and residential customers in the United States. It also offers data, voice and managed network services to retail and wholesale business customers; and provides Internet access and related value-added services to residential customers. The Company operates a network including more than 29,000 route miles of fiber and 90 metro fiber rings that provide data and voice IP service coverage across more than 90 percent of the United States. The Company operates four segments aligned around distinct customer categories including Enterprise/Mid-Market, Small Business, Carrier/Transport and Consumer. The Company's Enterprise/Mid-Market segment provides data, voice and managed network services to distributed multi-site business customers; Small Business segment provides data, voice and managed network services to small, often single-site business customers; Carrier/Transport segment provides transmission capacity and other data, voice and managed network services to telecommunications carriers and large enterprises; and Consumer Services segment provides nationwide Internet access and related value-added services to residential customers. The Company faces competition from competitors including AT&T, CenturyLink, Verizon, XO and Zayo. It also faces competition from ILECs, CLECs, cable service providers and wireless and satellite service providers. The Company's communications services are subject to varying degrees of federal, state and local regulation.
Executives
Walter Turek director 911 PANORAMA TRAIL S, ROCHESTER NY 14625
R. Gerard Salemme director 815 CONNECTICUT AVE., SUITE 610, WASHINGTON DC 20036
Kathy S Lane director C/O GILLETTE COMPANY, PRUDENTIAL TOWER BUILDING, BOSTON MA 02199
Julie Ann Shimer director 18453 LAS CUMBRES ROAD, LOS GATOS CA 95033
Gerard Brossard officer: EVP, Enterprise & Mid-Market 1170 PEACHTREE STREET, ATLANTA GA 30309
Valerie C Benjamin officer: SVP, Human Resources 1375 PEACHTREE STREET, ATLANTA GA 30309
Susan D Bowick director C/O HEWLETT-PACKARD CO, 3000 HANOVER STREET, PALO ALTO CA 94304
Joseph F Eazor director, officer: Chief Executive Officer 1170 PEACHTREE STREET, SUITE 900, ATLANTA GA 30309
Marc F Stoll director C/O ARISTA NETWORKS, INC., 5453 GREAT AMERICA PARKWAY, SANTA CLARA CA 95054
Manuel W Wisehart director 909 5TH AVE., UNIT 2101, SEATTLE WA 98164
S Marce Fuller director MIRANT CORPORATION, 1155 PERIMETER CENTER WEST, ATLANTA GA 30338
Thomas E Wheeler director 1250 CONNECTICUT AVE NW, CELLULAR TELECOMMUNICATIONS& INTERNET, WASHINGTON DC 20036
Barbara Dondiego officer: SVP Chief Marketing Officer 1375 PEACHTREE STREET ATLANTA GA 30309
Nathaniel A Davis director 1500 ECKINGTON PLACE NE, WASHINGTON DC 20002
Terrell B Jones director

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