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Innovate (Innovate) Financial Strength : 3 (As of Mar. 2024)


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What is Innovate Financial Strength?

Innovate 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:

Innovate Corp 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.

Innovate's Interest Coverage for the quarter that ended in Mar. 2024 was 0.16. Innovate's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.58. As of today, Innovate's Altman Z-Score is 0.98.


Competitive Comparison of Innovate's Financial Strength

For the Engineering & Construction subindustry, Innovate'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.


Innovate's Financial Strength Distribution in the Construction Industry

For the Construction industry and Industrials sector, Innovate's Financial Strength distribution charts can be found below:

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



Innovate 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:

Innovate's Interest Expense for the months ended in Mar. 2024 was $-17 Mil. Its Operating Income for the months ended in Mar. 2024 was $3 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $688 Mil.

Innovate's Interest Coverage for the quarter that ended in Mar. 2024 is

Interest Coverage=-1*Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*2.8/-17.2
=0.16

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

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Innovate Corps earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

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

Innovate's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(47.7 + 688.3) / 1260.8
=0.58

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.

Innovate has a Z-score of 0.98, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.98 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.


Innovate  (NYSE:VATE) 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.

Innovate 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.


Innovate Financial Strength Related Terms

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Innovate (Innovate) Business Description

Traded in Other Exchanges
Address
295 Madison Avenue, 12th Floor, New York, NY, USA, 10017
Innovate Corp is a diversified holding company that has a portfolio of subsidiaries in a variety of operating segments which are; The infrastructure segment is comprised of DBM Global Inc, a fully integrated industrial construction, structural steel, and facility maintenance provider that provides fabrication and erection of structural steel and heavy steel plate services, The Life Sciences segment is comprised of Pansend Life Sciences which seeks to develop products to treat early osteoarthritis of the knee and aesthetic and medical technologies for the skin, and Spectrum segment is comprised of HC2 Broadcasting Holdings Inc which operates over-the-air broadcasting stations across the United States.
Executives
Wayne Jr Barr director ANACOMP INC, 15378 AVENUE OF SCIENCE, SAN DIEGO CA 92128
Michael J. Sena officer: Chief Financial Officer 450 PARK AVENUE, 30TH FLOOR, NEW YORK NY 10022
Brian Steven Goldstein director 295 MADISON AVENUE, 12TH FLOOR, NEW YORK NY 10017
Amy Marie Wilkinson director 295 MADISON AVENUE, 12TH FLOOR, NEW YORK NY 10017
Shelly Lombard director 44 MORSE AVENUE, BLOOMFIELD NJ 07003
Avram A Glazer director C/O WOODS OVIATT GILMAN LLP, 700 CROSSROADS BUILDING, ROCHESTER NY 14614
Suzi R Herbst officer: Chief Administrative Officer C/O HC2 HOLDINGS, INC., 450 PARK AVENUE, 30TH FLOOR, NEW YORK NY 10022
Joseph Anthony Ferraro officer: Chief Legal Officer & Corp Sec 56 EMILY ROAD, FAR HILLS FL 07931
Continental Ltc, Inc. 10 percent owner 11001 LAKELINE BLVD., STE. 120, AUSTIN TX 78717
Michael Gorzynski director, 10 percent owner 595 MADISON AVE, FLOOR 29, NEW YORK NY 10022
Continental General Insurance Co 10 percent owner 11001 LAKELINE BLVD., STE. 120, AUSTIN TX 78717
Continental Insurance Group, Ltd. 10 percent owner 11001 LAKELINE BLVD., STE. 120, AUSTIN TX 78717
Percy Rockdale Llc 10 percent owner 595 MADISON AVENUE, 29TH FLOOR, NEW YORK NY 10022
Mg Capital Management Ltd. 10 percent owner C/O CAMPBELLS LLP, FLOOR 4, WILLOW HOUSE, CRICKET SQUARE, GRAND CAYMAN E9 KY1-9010
Rio Royal Llc 10 percent owner 595 MADISON AVENUE, 29TH FLOOR, NEW YORK NY 10022