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Cistera Networks (Cistera Networks) Financial Strength : 0 (As of Sep. 2010)


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What is Cistera Networks Financial Strength?

Cistera Networks has the Financial Strength Rank of 0.

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.

Cistera Networks's Interest Coverage for the quarter that ended in Sep. 2010 was 0.03. Cistera Networks's debt to revenue ratio for the quarter that ended in Sep. 2010 was 0.33. As of today, Cistera Networks's Altman Z-Score is 0.00.


Competitive Comparison of Cistera Networks's Financial Strength

For the Software - Application subindustry, Cistera Networks'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.


Cistera Networks's Financial Strength Distribution in the Software Industry

For the Software industry and Technology sector, Cistera Networks's Financial Strength distribution charts can be found below:

* The bar in red indicates where Cistera Networks's Financial Strength falls into.



Cistera Networks 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:

Cistera Networks's Interest Expense for the months ended in Sep. 2010 was $-0.03 Mil. Its Operating Income for the months ended in Sep. 2010 was $0.00 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2010 was $0.00 Mil.

Cistera Networks's Interest Coverage for the quarter that ended in Sep. 2010 is

Interest Coverage=-1*Operating Income (Q: Sep. 2010 )/Interest Expense (Q: Sep. 2010 )
=-1*0.001/-0.034
=0.03

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

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

Cistera Networks's Debt to Revenue Ratio for the quarter that ended in Sep. 2010 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2010 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0.755 + 0) / 2.308
=0.33

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.

Cistera Networks has a Z-score of 0.00, indicating it is in Distress Zones. 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.


Cistera Networks  (OTCPK:CNWT) 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.

Cistera Networks has the Financial Strength Rank of 0.


Cistera Networks Financial Strength Related Terms

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Cistera Networks (Cistera Networks) Business Description

Traded in Other Exchanges
N/A
Address
5045 Lorimar Drive, Suite 180, Plano, TX, USA, 75093 5707
Cistera Networks Inc is a provider of cloud business communications solutions. It acts as a global provider of call recording, speech analytics and business intelligence solutions via on-site server or the cloud.
Executives
Roaring Fork Capital Sbic, L.p. 10 percent owner 1875 LAWRENCE STREET, SUITE 400, DENVER CO 80202

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