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B. Riley Financial Financial Strength

: 3 (As of Jun. 2022)
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B. Riley Financial has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

B. Riley Financial Inc displays poor financial strength. Usually, this is caused by too much debt for the company.

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.

B. Riley Financial did not have earnings to cover the interest expense. B. Riley Financial's debt to revenue ratio for the quarter that ended in Jun. 2022 was 12.80. As of today, B. Riley Financial's Altman Z-Score is 0.65.


Competitive Comparison

For the Financial Conglomerates subindustry, B. Riley Financial'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.

   

B. Riley Financial Financial Strength Distribution

For the Diversified Financial Services industry and Financial Services sector, B. Riley Financial's Financial Strength distribution charts can be found below:

* The bar in red indicates where B. Riley Financial's Financial Strength falls into.



B. Riley Financial 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:

B. Riley Financial's Interest Expense for the months ended in Jun. 2022 was $-32 Mil. Its Operating Income for the months ended in Jun. 2022 was $-159 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $2,107 Mil.

B. Riley Financial's Interest Coverage for the quarter that ended in Jun. 2022 is

B. Riley Financial did not have earnings to cover the interest expense.

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

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. B. Riley Financial Incs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

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

B. Riley Financial's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(80 + 2106.751) / 170.8
=12.80

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.

B. Riley Financial has a Z-score of 0.65, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.65 is in distress zone. This implies bankruptcy 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.


B. Riley Financial  (NAS:RILY) 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.

B. Riley Financial has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


B. Riley Financial Financial Strength Related Terms

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


B. Riley Financial Business Description

B. Riley Financial logo
Traded in Other Exchanges
Address
11100 Santa Monica Boulevard, Suite 800, Los Angeles, CA, USA, 90025
B. Riley Financial Inc is a diversified financial services company. The company through its subsidiaries offers investment banking and financial services to corporate, institutional and high net worth clients and also asset disposition, valuation and appraisal and capital advisory services to retail, wholesale, institutional, lenders, capital providers, private equity investors, and professional services firms in United States, Canada, and Europe. It also provides internet access and subscription services. The reportable operating segments of the company include Capital Markets, Auction and Liquidation, Financial Consulting, Principal Investments - United Online and magicJack, and Brand segment, of which key revenue is derived from the Capital Markets segment.
Executives
Brandt Tamara Sue director C/O B. RILEY FINANCIAL, INC. 11100 SANTA MONICA BLVD., SUITE 800 LOS ANGELES CA 90025
Labran Renee E director 2425 OLYMPIC BLVD. SUITE 6050 WEST SANTA MONICA CA 90404
Paulson Randall E director
Sims Todd D. director C/O B. RILEY FINANCIAL, INC. 21255 BURBANK BLVD., SUITE 400 WOODLAND HILLS CA 91367
Sheldon Michael Joseph director C/O ALDILA, INC. 14145 DANIELSON ST. STE B POWAY CA 92064
D Agostino Robert P director 21255 BURBANK BOULEVARD SUITE 400 WOODLAND HILLS CA 91367
Antin Robert L director
Williams Mikel H director 21255 BURBANK BOULEVARD SUITE 400 WOODLAND HILLS CA 91367
Moore Andrew officer: CEO of B. Riley FBR, Inc. C/O B. RILEY FINANCIAL, INC. 21255 BURBANK BLVD., SUITE 400 WOODLAND HILLS CA 91367
Forman Alan N officer: EVP, General Counsel, Sec 21255 BURBANK BOULEVARD SUITE 400 WOODLAND HILLS CA 91367
Walters Marian director C/O B. RILEY FINANCIAL, INC. 21255 BURBANK BLVD., SUITE 400 WOODLAND HILLS CA 91367
Young Kenneth M officer: President C/O B. RILEY FINANCIAL, INC. 21255 BURBANK BLVD., SUITE 400 WOODLAND HILLS CA 91367
Wunderlich Gary Kent Jr director CLO B. RILEY FINANCIAL, INC., 21255 BURBANK BLVD., SUITE 400 WOODLAND CA 91367
Hendrix Richard J director 1300 NORTH 17TH STREET ARLINGTON VA 22209
Todaro Richard L director C/O GREAT AMERICAN GROUP, INC. 21255 BURBANK BLVD., SUITE 400 WOODLAND HILLS CA 91367

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