What is Books-A-Million Financial Strength?
Books-A-Million 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.
Books-A-Million did not have earnings to cover the interest expense.
Books-A-Million's debt to revenue ratio for the quarter that ended in Oct. 2015 was 0.16.
As of today, Books-A-Million's Altman Z-Score is 0.00.
Competitive Comparison of Books-A-Million's Financial Strength
For the Specialty Retail subindustry, Books-A-Million'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.
Books-A-Million's Financial Strength Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Books-A-Million's Financial Strength distribution charts can be found below:
* The bar in red indicates where Books-A-Million's Financial Strength falls into.
Books-A-Million 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:
Books-A-Million's Interest Expense for the
months ended in Oct. 2015 was $-0.7 Mil. Its Operating Income for the
months ended in Oct. 2015 was $-6.6 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Oct. 2015 was $33.4 Mil.
Books-A-Million's Interest Coverage for the quarter that ended in Oct. 2015 is
| Books-A-Million 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.
Books-A-Million's Debt to Revenue Ratio for the quarter that ended in Oct. 2015 is
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.
Books-A-Million 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.
Books-A-Million (Books-A-Million) Business Description
Traded in Other Exchanges
N/A
Address
Books-A-Million Inc was founded in 1917, originally incorporated under the laws of the State of Alabama in 1964 and reincorporated in Delaware in September 1992. The Company is a book retailer located in the eastern United States and operates both superstores and traditional bookstores. The Company operates both superstores and traditional bookstores. The first Superstore was opened in 1987 and operates under the names Books-A-Million and Books and Co. and 2nd & Charles. Traditional bookstores are smaller stores operated under the names Bookland, Books-A-Million and BAM. All store formats generally offer a selection of sellers and other hardcover and paperback books, magazines, toys, games, electronics and gifts. In addition to these retail store formats, it offers its products over the internet at Booksamillion.com. Its retail operations also include the operation of Yogurt Mountain Holding, LLC, a retailer and franchisor of self-serve frozen yogurt stores. It also develops and manages commercial real estate investments through its subsidiary, Preferred Growth Properties, LLC. The Company operates in three reportable operating segments: Retail trade; Electronic commerce trade; and Real estate development and management. In the retail trade segment, it is engaged in the retail sale of books, magazines and general merchandise, including gifts, cards, games, toys, collectibles, music, DVDs, electronic devices and accessories in its retail stores. In the electronic commerce trade segment, it is engaged in the retail sale of books and general merchandise over the internet. The real estate development and management segment is managed separately from the retail trade and electronic commerce trade segments, with a focus on deriving revenues through developing and leasing commercial retail real estate for purposes of earning rental income. The Company promotes its bookstores through the use of traditional direct mail, e-mail and online advertising, as well as point-of-sale materials posted and distributed in its stores. The retail book business is competitive. The Company faces direct competition from other superstores, such as Barnes & Noble, and it also faces competition from mass merchandisers, such as Wal-Mart and Costco, and online retailers, such as Amazon.com, Barnes & Noble and Wal-Mart. Its bookstores also compete with specialty retail stores that offer books in particular subject areas, independent single store operators, variety discounters, drugstores, warehouse clubs, mail order clubs and other retailers offering books. In addition, its bookstores face additional competition from the market for electronic books and may face competition from other categories of retailers entering the retail book market. The Company is subject to general business regulations and laws, as well as regulations and laws specifically governing the Internet and e-commerce.
Executives
| Joel R Anderson |
other: See Remarks Below |
202 NORTH COURT STREET, FLORENCE AL 35630 |
| Ronald James Domanico |
director |
3100 JOE JERKINS BLVD, AUSTELL GA 30106 |
| Terrance G Finley |
officer: CEO & President, other: See Remarks Below |
402 INDUSTRIAL LANE, C/O BOOKS A MILLION, BIRMINGHAM AL 35211 |
| Clyde B Anderson |
director, 10 percent owner, officer: Executive Chairman, other: See Remarks Below |
BOOKS A MILLION INC, 402INDUSTRIAL LANE, BIRMING AL 35211 |
| Albert C Johnson |
director |
3172 CROSSINGS DRIVE, BIRMINGHAM AL 35242 |
| Rogers William H Jr |
director |
214 N TRYON STREET, CHARLOTTE NC 28202 |
| Sandra B Cochran |
director, officer: PRESIDENT & CEO, other: SEE REMARKS BELOW |
305 HARTMANN DRIVE, LEBANON TN 37087 |
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