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Ellington Financial Financial Strength

: 3 (As of Mar. 2022)
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Ellington 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:

Ellington 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.

GuruFocus does not calculate Ellington Financial's interest coverage with the available data. Ellington Financial's debt to revenue ratio for the quarter that ended in Mar. 2022 was 145.53. Altman Z-Score does not apply to banks and insurance companies.


Ellington 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:

Ellington Financial's Interest Expense for the months ended in Mar. 2022 was $0.00 Mil. Its Operating Income for the months ended in Mar. 2022 was $0.00 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2022 was $4,278.01 Mil.

Ellington Financial's Interest Coverage for the quarter that ended in Mar. 2022 is

GuruFocus does not calculate Ellington Financial's interest coverage with the available data.

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

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

Ellington Financial's Debt to Revenue Ratio for the quarter that ended in Mar. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 4278.011) / 29.396
=145.53

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.


Ellington Financial  (NYSE:EFC) 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.

Ellington 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.


Ellington Financial Financial Strength Related Terms

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


Ellington Financial Business Description

Ellington Financial logo
Traded in Other Exchanges
Address
53 Forest Avenue, Old Greenwich, CT, USA, 06870
Ellington Financial Inc is a specialty finance company. Its primary investment objective is to generate attractive, risk-adjusted total returns for its shareholders by making investments. The company focuses on investing residential mortgage-backed securities guaranteed by U.S. government agency or a U.S. government-sponsored entity, Alternative A-paper, subprime residential mortgage loans, mortgage servicing rights, mortgage-related derivatives, commercial mortgage-backed securities and other commercial real estate debt. It also invests in corporate debt and equity securities, collateralized loan obligations, consumer loans and asset-backed securities. Revenue generated by the company consists of interest income.
Executives
Dannhauser Stephen J director 122 WEST 55TH STREET NEW YORK NY 10019
Smernoff Chris officer: Chief Accounting Officer 53 FOREST AVENUE OLD GREENWICH CT 06870
Herlihy John officer: Chief Financial Officer 53 FOREST AVENUE OLD GREENWICH CT 06870
Simon Ronald I director 485 MADISON AVENUE 14TH FLOOR NEW YORK NY 10022
Robards Thomas F director 666 THIRD AVENUE, 5TH FLOOR NEW YORK NY 10017
Vranos Michael W director, 10 percent owner, officer: Co-Chief Investment Officer 52 FOREST AVENUE OLD GREENWICH CT 06870
Penn Laurence director, officer: CEO and President 52 FOREST AVENUE OLD GREENWICH CT 06870
Mumford Lisa officer: Chief Financial Officer 6 BEACHWOOD COURT DIX HILLS NY 11746
Tecotzky Mark officer: Co-Chief Investment Officer 53 FOREST AVENUE OLD GREENWICH CT 06870
Margolis Daniel R. officer: Secretary 53 FOREST AVENUE OLD GREENWICH CT 06870
Resendez Edward director 52 FOREST AVENUE OLD GREENWICH CT 06870
Vc Investments Llc 10 percent owner 53 FOREST AVENUE 2ND FLOOR OLD GREENWICH CT 06870
Emg Holdings, L.p. 10 percent owner 53 FOREST AVENUE OLD GREENWICH CT 06870
Fbr Capital Markets Pt Inc 10 percent owner 1001 NINETEENTH STREET NORTH ARLINGTON VA 22302
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