What is XAI Octagon Floating Rate & Alternativeome Trust Financial Strength?
XAI Octagon Floating Rate & Alternativeome Trust 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:
XAI Octagon Floating Rate & Alternative Income Trust 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.
GuruFocus does not calculate XAI Octagon Floating Rate & Alternativeome Trust's interest coverage with the available data.
XAI Octagon Floating Rate & Alternativeome Trust's debt to revenue ratio for the quarter that ended in Sep. 2023 was 2.06.
Altman Z-Score does not apply to banks and insurance companies.
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:
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.
Altman Z-Score does not apply to banks and insurance companies.
* 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.
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.
XAI Octagon Floating Rate & Alternativeome Trust 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.
Thank you for viewing the detailed overview of XAI Octagon Floating Rate & Alternativeome Trust's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
XAI Octagon FR & Alt Income Term Trust is a diversified, closed-end management investment company. The Trust's investment objective is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle.
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