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FreightCar America has the Financial Strength Rank of 5.
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.FreightCar America's Interest Coverage for the quarter that ended in Dec. 2023 was 2.13. FreightCar America's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.15. As of today, FreightCar America's Altman Z-Score is 0.84.
For the Railroads subindustry, FreightCar 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.
For the Transportation industry and Industrials sector, FreightCar America's Financial Strength distribution charts can be found below:
* The bar in red indicates where FreightCar America's Financial Strength falls into.
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:
FreightCar America's Interest Expense for the months ended in Dec. 2023 was $-2.0 Mil. Its Operating Income for the months ended in Dec. 2023 was $4.4 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $44.4 Mil.
FreightCar America's Interest Coverage for the quarter that ended in Dec. 2023 is
Interest Coverage | = | -1 | * | Operating Income (Q: Dec. 2023 ) | / | Interest Expense (Q: Dec. 2023 ) |
= | -1 | * | 4.359 | / | -2.043 | |
= | 2.13 |
The higher the ratio, the stronger the company's financial strength is.
2. Debt to revenue ratio. The lower, the better.
FreightCar America's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is
Debt to Revenue Ratio | = | Total Debt (Q: Dec. 2023 ) | / | Revenue | ||
= | (Short-Term Debt & Capital Lease Obligation | + | Long-Term Debt & Capital Lease Obligation) | / | Revenue | |
= | (29.415 | + | 44.437) | / | 506.416 | |
= | 0.15 |
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.
FreightCar America has a Z-score of 0.84, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 0.84 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.
FreightCar America (NAS:RAIL) 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.
FreightCar America has the Financial Strength Rank of 5.
Thank you for viewing the detailed overview of FreightCar America's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
Benavides Alejandro Gil | 10 percent owner | BARRANQUILLA 404 COLONIA GRADALUPE, MONCLOVA N9 25750 |
Nicholas J Randall | officer: Chief Operating Officer | 125 S WACKER DRIVE, SUITE 1500, CHICAGO IL 60606 |
De Nigris Felan Jose | director | 125 S WACKER DRIVE, SUITE 1500, CHICAGO IL 60606 |
James R Meyer | director, officer: President and CEO | TWO NORTH RIVERSIDE PLAZA, SUITE 1300, CHICAGO IL 60606 |
W Matthew Tonn | officer: Chief Commercial Officer | 2 N RIVERSIDE PLAZA, SUITE 1300, CHICAGO IL 60606 |
Fuentes Sierra Juan Carlos | officer: Corporate Controller & CAO | 125 S WACKER DRIVE, SUITE 1500, CHICAGO IL 60606 |
Celia Perez | officer: GC and Corp Secretary | 125 S WACKER DRIVE, SUITE 1500, CHICAGO IL 60606 |
Travis D Kelly | director | 125 S WACKER DRIVE, SUITE 1500, CHICAGO IL 60606 |
Michael Anthony Riordan | officer: Corporate Controller and CAO | 125 SOUTH WACKER DRIVE, SUITE 1500, CHICAGO IL 60606 |
Rodger L Boehm | director | 165 WESTVIEW ROAD, WINNETKA IL 60093 |
Pacific Investment Management Co Llc | 10 percent owner | 650 NEWPORT CENTER DRIVE, NEWPORT BEACH CA 92660 |
Terence R Rogers | officer: Vice Pres, CFO and Treasurer | RYERSON INC, 2621 W. 15TH PLACE, CHICAGO IL 60608 |
Gil Benavides Jesus Salvador | director | 125 S. WACKER DRIVE, SUITE 1500, C/O FREIGHTCAR AMERICA, INC., CHICAGO IL 60606 |
Fabricaciones Y Servicios De Mexico, S.a. De C.v. | 10 percent owner | CARRETARA 57 KM 178, CASTANOS O5 25870 |
Elizabeth K Arnold | director | 8310 S. VALLEY HWY, SUITE 350, DENVER CO 80112 |
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