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Highlands Bankshares (WV) (Highlands Bankshares (WV)) Financial Strength : 3 (As of Dec. 2018)


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What is Highlands Bankshares (WV) Financial Strength?

Highlands Bankshares (WV) 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.

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 Highlands Bankshares (WV)'s interest coverage with the available data. Highlands Bankshares (WV)'s debt to revenue ratio for the quarter that ended in Dec. 2018 was 0.53. Altman Z-Score does not apply to banks and insurance companies.


Highlands Bankshares (WV) 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:

Highlands Bankshares (WV)'s Interest Expense for the months ended in Dec. 2018 was $-2.05 Mil. Its Operating Income for the months ended in Dec. 2018 was $0.00 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2018 was $10.49 Mil.

Highlands Bankshares (WV)'s Interest Coverage for the quarter that ended in Dec. 2018 is

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

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

Highlands Bankshares (WV)'s Debt to Revenue Ratio for the quarter that ended in Dec. 2018 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2018 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 10.492) / 19.792
=0.53

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.

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.


Highlands Bankshares (WV)  (OTCPK:HBSI) 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.

Highlands Bankshares (WV) 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.


Highlands Bankshares (WV) Financial Strength Related Terms

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Highlands Bankshares (WV) (Highlands Bankshares (WV)) Business Description

Traded in Other Exchanges
N/A
Address
3 North Main Street, P.O. Box 929, Petersburg, WV, USA, 26847
Highlands Bankshares Inc (WV) operates as a holding company, which engages in the provision of financial and banking services through its subsidiaries. It offers a variety of services, including commercial and individual demand and time deposit accounts, commercial and individual loans, drive-in banking services, and automatic teller machine banking. The banks provide services to customers located mainly in Grant, Hardy, Hampshire, Mineral, Pendleton, Randolph, and Tucker counties of West Virginia, including the towns of Petersburg, Keyser, Moorefield, Davis, and Wardensville.