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Spirit Pub Co (LSE:SPRT) Financial Strength : 0 (As of Feb. 2015)


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What is Spirit Pub Co Financial Strength?

Spirit Pub Co 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.

Spirit Pub Co's Interest Coverage for the quarter that ended in Feb. 2015 was 2.10. Spirit Pub Co's debt to revenue ratio for the quarter that ended in Feb. 2015 was 0.97. As of today, Spirit Pub Co's Altman Z-Score is 0.25.


Competitive Comparison of Spirit Pub Co's Financial Strength

For the Leisure subindustry, Spirit Pub Co'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.


Spirit Pub Co's Financial Strength Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Spirit Pub Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Spirit Pub Co's Financial Strength falls into.



Spirit Pub Co 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:

Spirit Pub Co's Interest Expense for the months ended in Feb. 2015 was £-29.9 Mil. Its Operating Income for the months ended in Feb. 2015 was £62.7 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Feb. 2015 was £807.4 Mil.

Spirit Pub Co's Interest Coverage for the quarter that ended in Feb. 2015 is

Interest Coverage=-1*Operating Income (Q: Feb. 2015 )/Interest Expense (Q: Feb. 2015 )
=-1*62.7/-29.9
=2.10

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

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

Spirit Pub Co's Debt to Revenue Ratio for the quarter that ended in Feb. 2015 is

Debt to Revenue Ratio=Total Debt (Q: Feb. 2015 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(12.9 + 807.4) / 842
=0.97

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.

Spirit Pub Co has a Z-score of 0.25, 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.


Spirit Pub Co  (LSE:SPRT) 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.

Spirit Pub Co has the Financial Strength Rank of 0.


Spirit Pub Co Financial Strength Related Terms

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


Spirit Pub Co (LSE:SPRT) Business Description

Traded in Other Exchanges
N/A
Address
Spirit Pub Co PLC was incorporated in England. The Company's trading activities are divided into two divisions; namely a Managed division and a Leased division. The Managed division involves pubs that are directly managed by the Group, and a Leased division which involves the granting of leases to licensees who run the pub as their own business, paying rent to the Group, purchasing beer and other drinks from the Group and entering into profit sharing arrangements for income from leisure machines. The Company holds 794 Managed pubs and 433 Leased pubs. The group operates solely in the United Kingdom.