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Sienna Senior Living (Sienna Senior Living) Financial Strength : 3 (As of Dec. 2023)


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What is Sienna Senior Living Financial Strength?

Sienna Senior Living 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:

Sienna Senior Living 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.

Sienna Senior Living's Interest Coverage for the quarter that ended in Dec. 2023 was 1.58. Sienna Senior Living's debt to revenue ratio for the quarter that ended in Dec. 2023 was 1.19. As of today, Sienna Senior Living's Altman Z-Score is 0.26.


Competitive Comparison of Sienna Senior Living's Financial Strength

For the Medical Care Facilities subindustry, Sienna Senior Living'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.


Sienna Senior Living's Financial Strength Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Sienna Senior Living's Financial Strength distribution charts can be found below:

* The bar in red indicates where Sienna Senior Living's Financial Strength falls into.



Sienna Senior Living 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:

Sienna Senior Living's Interest Expense for the months ended in Dec. 2023 was $-7.5 Mil. Its Operating Income for the months ended in Dec. 2023 was $11.9 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $565.1 Mil.

Sienna Senior Living's Interest Coverage for the quarter that ended in Dec. 2023 is

Interest Coverage=-1*Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*11.852/-7.495
=1.58

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. Sienna Senior Living Inc interest coverage is 1.53, which is low.

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

Sienna Senior Living's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(185.224 + 565.111) / 628.332
=1.19

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.

Sienna Senior Living has a Z-score of 0.26, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.26 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.


Sienna Senior Living  (OTCPK:LWSCF) 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.

Sienna Senior Living 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.


Sienna Senior Living Financial Strength Related Terms

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Sienna Senior Living (Sienna Senior Living) Business Description

Traded in Other Exchanges
Address
302 Town Centre Boulevard, Suite 300, Markham, ON, CAN, L3R 0E8
Sienna Senior Living Inc is one of the largest owners of seniors' housing, the largest licensed long-term care operator in Ontario, and a provider of services across the full continuum of care. The firm operates solely within Canada. The company is comprised of the following main business segments, LTC Business, Retirement, and Other. LTC business division consists of approximately 34 LTC residences in the Province of Ontario, eight seniors' living residences located in the Province of British Columbia and the LTC management services business. The group derives a majority of its revenue from LTC segment.

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