What is Nelnet Financial Strength?
Nelnet 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:
Nelnet 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.
GuruFocus does not calculate Nelnet's interest coverage with the available data.
Nelnet's debt to revenue ratio for the quarter that ended in Dec. 2023 was 12.97.
Altman Z-Score does not apply to banks and insurance companies.
Nelnet 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:
Nelnet's Interest Expense for the
months ended in Dec. 2023 was $-205 Mil. Its Operating Income for the
months ended in Dec. 2023 was $0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $10,198 Mil.
Nelnet's Interest Coverage for the quarter that ended in Dec. 2023 is
The higher the ratio, the stronger the company's financial strength is.
2. Debt to revenue ratio. The lower, the better.
Nelnet's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is
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.
Nelnet (Nelnet) Business Description
Traded in Other Exchanges
Address
121 South 13th Street, Suite 100, Lincoln, NE, USA, 68508
Nelnet Inc is a United States based company engaged in these five segments; Loan Servicing and Systems focuses on student and consumer loan origination services and servicing, loan origination and servicing-related technology solutions, and outsourcing business services, Education Technology, Services, and Payment Processing provides education services, payment technology, and community management solutions for K-12 schools, institutions, churches, and businesses, Asset Generation and Management Includes the acquisition and management of student and other loan assets, Nelnet Bank focuses on the private education and unsecured consumer loan markets, and Communications provides fiber optic service for internet, telephone, and television services.
Executives
| William J Munn |
officer: Secy, Chief Legal Off, Gen Cou |
121 S. 13TH STREET, SUITE 100, LINCOLN NE 68508 |
| Van Deun Jona M |
director |
121 SOUTH 13TH STREET, SUITE 100, LINCOLN NE 68508 |
| Dan D Muhleisen |
10 percent owner |
6321 DOECREEK CIRCLE, LINCOLN NE 68516 |
| Preeta D Bansal |
director |
121 SOUTH 13TH STREET, SUITE 100, LINCOLN NE 68508 |
| David S Graff |
director |
121 SOUTH 13TH STREET, SUITE 100, LINCOLN NE 68508 |
| Kimberly Kay Rath |
director |
121 SOUTH 13TH STREET, SUITE 100, LINCOLN NE 68508 |
| Kathleen Anne Farrell |
director |
121 SOUTH 13TH STREET, SUITE 100, LINCOLN NE 68508 |
| Matthew W Dunlap |
director, officer: Chief Business Develop. Off. |
121 SOUTH 13TH STREET, SUITE 100, LINCOLN NE 68508 |
| Magnolia Capital Fund, Lp |
other: See remarks |
1601 DODGE STREET, SUITE 3300, OMAHA NE 68102 |
| Magnolia Group, Llc |
other: See remarks |
1601 DODGE STREET, SUITE 3300, OMAHA NE 68102 |
| Adam K Peterson |
director, other: See below |
1601 DODGE STREET, SUITE 3300, OMAHA NE 68102 |
| Shelby J Butterfield |
10 percent owner |
121 SOUTH 13TH STREET, SUITE 100, LINCOLN NE 68508 |
| Michael S Dunlap |
director, 10 percent owner, officer: Chairman, Co-Chief Ex. Officer |
121 SOUTH 13TH STREET, SUITE 100, LINCOLN NE 68508 |
| Joann M Martin |
director |
6221 ANDREW COURT, LINCOLN NE 68512 |
| Angie Mulheisen |
10 percent owner |
3643 S 48TH STREET P O BOX 82535, LINCOLN NE 68501-2535 |
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