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KVH Industries Financial Strength

: 6 (As of Sep. 2020)
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KVH Industries has the Financial Strength Rank of 6.

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.

KVH Industries did not have earnings to cover the interest expense. KVH Industries's debt to revenue ratio for the quarter that ended in Sep. 2020 was 0.26. As of today, KVH Industries's Altman Z-Score is 3.94.


Competitive Comparison
* 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.


KVH Industries Financial Strength Distribution

* The bar in red indicates where KVH Industries's Financial Strength falls into.



KVH Industries 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:

KVH Industries's Interest Expense for the months ended in Sep. 2020 was $-0.0 Mil. Its Operating Income for the months ended in Sep. 2020 was $-0.5 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2020 was $5.7 Mil.

KVH Industries's Interest Coverage for the quarter that ended in Sep. 2020 is

KVH Industries 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.

KVH Industries's Debt to Revenue Ratio for the quarter that ended in Sep. 2020 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2020 ) / Revenue (Q: Sep. 2020 )
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(5.152 + 5.671) / 41.112
=0.26

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.

KVH Industries has a Z-score of 3.94, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.94 is strong.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


KVH Industries  (NAS:KVHI) 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.

KVH Industries has the Financial Strength Rank of 6.


KVH Industries Financial Strength Related Terms


KVH Industries Financial Strength Headlines

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