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Bird Construction (Bird Construction) Financial Strength : 7 (As of Dec. 2023)


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What is Bird Construction Financial Strength?

Bird Construction has the Financial Strength Rank of 7.

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.

Bird Construction's Interest Coverage for the quarter that ended in Dec. 2023 was 8.47. Bird Construction's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.05. As of today, Bird Construction's Altman Z-Score is 3.17.


Competitive Comparison of Bird Construction's Financial Strength

For the Engineering & Construction subindustry, Bird Construction'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.


Bird Construction's Financial Strength Distribution in the Construction Industry

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

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



Bird Construction 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:

Bird Construction's Interest Expense for the months ended in Dec. 2023 was $-3 Mil. Its Operating Income for the months ended in Dec. 2023 was $24 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $91 Mil.

Bird Construction'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*24.378/-2.878
=8.47

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

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

Bird Construction'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
=(21.657 + 91.161) / 2361.564
=0.05

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.

Bird Construction has a Z-score of 3.17, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.17 is strong.

* 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.


Bird Construction  (OTCPK:BIRDF) 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.

Bird Construction has the Financial Strength Rank of 7.


Bird Construction Financial Strength Related Terms

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Bird Construction (Bird Construction) Business Description

Traded in Other Exchanges
Address
5700 Explorer Drive, Suite 400, Mississauga, ON, CAN, L4W 0C6
Bird Construction Inc is a construction company operating from coast-to-coast and servicing all of Canada's major markets. The group provides a comprehensive range of construction services from new construction for industrial, commercial, institutional, and civil infrastructure markets, to industrial maintenance, repair and operations services, heavy civil construction, and mine support services. It also provides vertical infrastructure including, electrical, mechanical, and specialty trades. In addition to its commitment to safety, Bird provides services that offer long-term value to its stakeholders.