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FalconStor Software (FalconStor Software) Financial Strength : 3 (As of Jun. 2023)


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What is FalconStor Software Financial Strength?

FalconStor Software 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:

FalconStor Software 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.

FalconStor Software did not have earnings to cover the interest expense. FalconStor Software's debt to revenue ratio for the quarter that ended in Jun. 2023 was 0.23. As of today, FalconStor Software's Altman Z-Score is -17.56.


Competitive Comparison of FalconStor Software's Financial Strength

For the Software - Application subindustry, FalconStor Software'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.


FalconStor Software's Financial Strength Distribution in the Software Industry

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

* The bar in red indicates where FalconStor Software's Financial Strength falls into.



FalconStor Software 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:

FalconStor Software's Interest Expense for the months ended in Jun. 2023 was $-0.18 Mil. Its Operating Income for the months ended in Jun. 2023 was $-0.19 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2023 was $2.17 Mil.

FalconStor Software's Interest Coverage for the quarter that ended in Jun. 2023 is

FalconStor Software 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.

FalconStor Software's Debt to Revenue Ratio for the quarter that ended in Jun. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0.025 + 2.168) / 9.484
=0.23

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.

FalconStor Software has a Z-score of -17.56, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of -17.56 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.


FalconStor Software  (OTCPK:FALC) 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.

FalconStor Software 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.


FalconStor Software Financial Strength Related Terms

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


FalconStor Software (FalconStor Software) Business Description

Traded in Other Exchanges
N/A
Address
501 Congress Avenue, Suite 150, Austin, TX, USA, 78701
FalconStor Software Inc operates in the trusted data protection software industry. The company enables enterprise customers and managed service providers to secure, migrate, and protect their data while reducing data storage and long-term retention costs. The products are offered through and supported by a worldwide network of managed service providers, systems integrators, resellers, and original equipment manufacturers. It's software products create investment protection, flexibility, and leverage of modern cloud-based technologies, through software-defined functionality that provides backup and long-term retention, and business continuity driven data replication. The company's geographical markets are the Americas, Asia Pacific, Europe, Middle East, Africa and Others.
Executives
Robert Todd Brooks officer: Chief Executive Officer C/O NOVATION COMPANIES, INC., 2 HUNTINGTON QUADRANGLE, SUITE 2S01, MELVILLE NY 11747
Vincent Sita officer: Chief Financial Officer C/O FALCONSTOR SOFTWARE, INC., 701 BRAZOS STREET, SUITE 400, AUSTIN TX 78701
Michael P Kelly director
Brad Wolfe officer: Chief Financial Officer C/O FALCONSTOR SOFTWARE, INC., 701 BRAZOS STREET, SUITE 400, AUSTIN TX 78701
Hcp-fva, Llc director, 10 percent owner 17 STATE STREET, SUITE 3230, NEW YORK NY 10004
Esw Capital, Llc 10 percent owner 401 CONGRESS AVENUE, SUITE 2650, AUSTIN TX 78701
Joseph Liemandt 10 percent owner 5001 PLAZA ON THE LAKE, AUSTIN TX 78746
Patrick Mcclain officer: EVP, CFO & Treasurer C/O FALCONSTOR SOFTWARE, INC., 2 HUNTINGTON QUADRANGLE, SUITE 2S01, MELVILLE NY 11747
Todd Oseth officer: CEO & President C/O MCDATA CORPORATION, 380 INTERLOCKEN CRESCENT, BROOMFIELD CO 80021
William D Miller director
Barry Rudolph director 1351 S SUNSET STREET, LONGMONT CO 80501
Daniel Murale officer: VP of Finance & Interim CFO C/O FALCONSTOR SOFTWARE, INC., 2 HUNTINGTON QUADRANGLE, SUITE 2S01, MELVILLE NY 11747
Gary Quinn officer: COO and EVP C/O COMPUTER ASSOCIATES INTER INC, ONE COMPUTER ASSOC PLAZA, ISLANDIA NY 11749
Alan Komet officer: EVP Worldwide Field Operations 2 HUNTINGTON QUADRANGLE, MELVILLE NY 11747
Hale Martin M Jr director, 10 percent owner

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