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Potash America (Potash America) Financial Strength : 0 (As of Dec. 2013)


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What is Potash America Financial Strength?

Potash America 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.

Potash America did not have earnings to cover the interest expense. As of today, Potash America's Altman Z-Score is 0.00.


Competitive Comparison of Potash America's Financial Strength

For the Consulting Services subindustry, Potash America'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.


Potash America's Financial Strength Distribution in the Business Services Industry

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

* The bar in red indicates where Potash America's Financial Strength falls into.



Potash America 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:

Potash America's Interest Expense for the months ended in Dec. 2013 was $-0.02 Mil. Its Operating Income for the months ended in Dec. 2013 was $-0.08 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2013 was $0.00 Mil.

Potash America's Interest Coverage for the quarter that ended in Dec. 2013 is

Potash America 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.

Potash America's Debt to Revenue Ratio for the quarter that ended in Dec. 2013 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2013 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1.41 + 0) / 0
=N/A

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.

Potash America 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.


Potash America  (OTCPK:PTAM) 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.

Potash America has the Financial Strength Rank of 0.


Potash America Financial Strength Related Terms

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Potash America (Potash America) Business Description

Traded in Other Exchanges
N/A
Address
501 Las Olas Boulevard, Suite 247, Fort Lauderdale, FL, USA, 33301
Potash America Inc focuses on industries such as renewable energy, commercial agriculture, green energy technology, health and wellness, cannabis/hemp development, and environmentally responsible mining and exploration.

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