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Emeco Holdings Financial Strength

: 4 (As of Jun. 2021)
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Emeco Holdings has the Financial Strength Rank of 4.

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.

Emeco Holdings's Interest Coverage for the quarter that ended in Jun. 2021 was 1.61. Emeco Holdings's debt to revenue ratio for the quarter that ended in Jun. 2021 was 0.46. As of today, Emeco Holdings's Altman Z-Score is 0.89.


Competitive Comparison

For the Rental & Leasing Services subindustry, Emeco Holdings'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.

   

Emeco Holdings Financial Strength Distribution

For the Business Services industry and Industrials sector, Emeco Holdings's Financial Strength distribution charts can be found below:

* The bar in red indicates where Emeco Holdings's Financial Strength falls into.



Emeco Holdings 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:

Emeco Holdings's Interest Expense for the months ended in Jun. 2021 was $-26.7 Mil. Its Operating Income for the months ended in Jun. 2021 was $43.0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2021 was $218.5 Mil.

Emeco Holdings's Interest Coverage for the quarter that ended in Jun. 2021 is

Interest Coverage=-1*Operating Income (Q: Jun. 2021 )/Interest Expense (Q: Jun. 2021 )
=-1*43.045871559633/-26.689602446483
=1.61

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

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

Emeco Holdings's Debt to Revenue Ratio for the quarter that ended in Jun. 2021 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2021 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(10.243883792049 + 218.50993883792) / 492.17737003058
=0.46

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.

Emeco Holdings has a Z-score of 0.89, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.89 is in distress zone. This implies bankrupcy 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.


Emeco Holdings  (OTCPK:EOHDF) 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.

Emeco Holdings has the Financial Strength Rank of 4.


Emeco Holdings Financial Strength Related Terms

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


Emeco Holdings Business Description

Emeco Holdings logo
Industry
Traded in Other Exchanges
Address
Level 3, 71 Walters Drive, Osborne Park, Perth, WA, AUS, 6017
Emeco Holdings Ltd owns and operates a fleet of original equipment manufacturer machines to deliver equipment rental solutions. Its reportable segments are Australian Rental that provides a wide range of earthmoving equipment to customers in Australia, Australian Workshops which is engaged in providing maintenance services to customers in Australia and Pit N Portal which provides a range of mining services solutions and associated services to customers in Australia.. The company generates a majority of its revenue from the Australian Rental Segment. Geographically, it generates a majority of its revenue from Australia.

Emeco Holdings Headlines

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