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Independence Contract Drilling Financial Strength

: 3 (As of Mar. 2022)
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Independence Contract Drilling 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:

Independence Contract Drilling 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.

Independence Contract Drilling did not have earnings to cover the interest expense. Independence Contract Drilling's debt to revenue ratio for the quarter that ended in Mar. 2022 was 0.89. As of today, Independence Contract Drilling's Altman Z-Score is -1.60.


Competitive Comparison

For the Oil & Gas Drilling subindustry, Independence Contract Drilling'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.

   

Independence Contract Drilling Financial Strength Distribution

For the Oil & Gas industry and Energy sector, Independence Contract Drilling's Financial Strength distribution charts can be found below:

* The bar in red indicates where Independence Contract Drilling's Financial Strength falls into.



Independence Contract Drilling 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:

Independence Contract Drilling's Interest Expense for the months ended in Mar. 2022 was $-4.7 Mil. Its Operating Income for the months ended in Mar. 2022 was $-7.2 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2022 was $120.1 Mil.

Independence Contract Drilling's Interest Coverage for the quarter that ended in Mar. 2022 is

Independence Contract Drilling 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.

Independence Contract Drilling'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
=(4.573 + 120.099) / 139.964
=0.89

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.

Independence Contract Drilling has a Z-score of -1.60, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of -1.6 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.


Independence Contract Drilling  (NYSE:ICD) 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.

Independence Contract Drilling 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.


Independence Contract Drilling Financial Strength Related Terms

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


Independence Contract Drilling Business Description

Independence Contract Drilling logo
Traded in Other Exchanges
N/A
Address
20475 State Highway 249, Suite 300, Houston, TX, USA, 77070
Independence Contract Drilling Inc is engaged in providing land-based contract drilling services for oil and natural gas producers. The company constructs its own and operates a premium land rig fleet. It develops and assembles its ShaleDriller series rig which is used for the development of oil and gas properties. The company's customers for contract drilling services in the United States include oil and natural gas companies, independent oil and natural gas companies, as well as various small to mid-sized publicly traded and privately held oil and gas companies.
Executives
Msd Private Credit Opportunity (non-eci) Fund, Llc director, 10 percent owner ONE VANDERBILT AVENUE, 26TH FLOOR NEW YORK NY 10017
Msd Credit Opportunity Master Fund, L.p. director, 10 percent owner ONE VANDERBILT AVENUE, 26TH FLOOR NEW YORK NY 10017
Cebula Vincent J director 1301 AVENUE OF THE AMERICAS 34 TH FLOOR NEW YORK NY 10019
Msd Pcof Partners Lxxiii, Llc director, 10 percent owner ONE VANDERBILT AVENUE, 26TH FLOOR NEW YORK NY 10017
Gleysteen Christopher director ONE VANDERBILT AVENUE, 26TH FLOOR NEW YORK NY 10017
Msd Partners, L.p. director, 10 percent owner ONE VANDERBILT AVENUE, 26TH FLOOR NEW YORK NY 10017
Keller Scott A. officer: SVP - SALES AND MARKETING 20475 SH 249 SUITE 300 HOUSTON TX 77070
Kokenes Kathrine officer: VP & CHIEF ACCOUNTING OFFICER 20475 SH 249 SUITE 300 HOUSTON TX 77070
Nieuwoudt Stacy Durbin director 20475 SH 249 SUITE 300 HOUSTON TX 77070
Dalrymple Philip officer: VICE PRESIDENT - OPERATIONS 11601 NORTH GALAYDA STREET HOUSTON TX 77086
Gallegos John A. Jr. director, officer: PRESIDENT & CEO 952 ECHO LANE SUITE 460 HOUSTON TX 77024
Minmier James director 777 N.W. 63RD ST. OKLAHOMA CITY OK 73116
Monroe William 10 percent owner C/O HIGIER ALLEN & LAUTIN, P.C. 2711 N. HASKELL AVE., SUITE 2400 DALLAS TX 75204
Fitts Travis officer: SVP HR & HSE 20475 HWY 249 SUITE 300 HOUSTON TX 77070
Humphries Bruce officer: SVP Operations - West 20475 HWY 249 SUITE 300 HOUSTON TX 77070

Independence Contract Drilling Headlines

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