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Greenbrier (Greenbrier) Financial Strength : 5 (As of Feb. 2024)


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What is Greenbrier Financial Strength?

Greenbrier 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.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Greenbrier's Interest Coverage for the quarter that ended in Feb. 2024 was 2.45. Greenbrier's debt to revenue ratio for the quarter that ended in Feb. 2024 was 0.52. As of today, Greenbrier's Altman Z-Score is 2.05.


Competitive Comparison of Greenbrier's Financial Strength

For the Railroads subindustry, Greenbrier'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.


Greenbrier's Financial Strength Distribution in the Transportation Industry

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

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



Greenbrier 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:

Greenbrier's Interest Expense for the months ended in Feb. 2024 was $-24 Mil. Its Operating Income for the months ended in Feb. 2024 was $59 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Feb. 2024 was $1,494 Mil.

Greenbrier's Interest Coverage for the quarter that ended in Feb. 2024 is

Interest Coverage=-1*Operating Income (Q: Feb. 2024 )/Interest Expense (Q: Feb. 2024 )
=-1*58.6/-23.9
=2.45

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

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

Greenbrier's Debt to Revenue Ratio for the quarter that ended in Feb. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Feb. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(300.8 + 1493.7) / 3450.8
=0.52

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.

Greenbrier has a Z-score of 2.05, indicating it is in Grey Zones. This implies that Greenbrier is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.05 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* 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.


Greenbrier  (NYSE:GBX) 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.

Greenbrier has the Financial Strength Rank of 5.


Greenbrier Financial Strength Related Terms

Thank you for viewing the detailed overview of Greenbrier's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Greenbrier (Greenbrier) Business Description

Traded in Other Exchanges
Address
One Centerpoint Drive, Suite 200, Lake Oswego, OR, USA, 97035
Greenbrier Companies Inc designs, manufactures, and markets railroad freight car equipment in North America and Europe, marine barges in North America and provides wheel services, railcar refurbishment, and parts, leasing and other services to the railroad. Its segments include Manufacturing, Maintenance Services and Leasing & Management Services. The company generates a majority of its revenue from the manufacturing segment. Geographically, it derives a majority of revenue from the United States.
Executives
Martin Raymond Baker officer: SVP, GC & Compliance Officer ONE CENTERPOINTE DRIVE, SUITE 200, LAKE OSWEGO OR 97035
Patrick J Ottensmeyer director PO BOX 219335, KANSAS CITY MO 64121
Laurie R Dornan officer: SVP, Chief HR Officer ONE CENTERPOINTE DR., SUITE 200, LAKE OSWEGO OR 97035
Charles J Swindells director ONE CENTERPOINTE DR., SUITE 200, LAKE OSWEGO OR 97035
Matthew Joseph Meyer officer: SVP, Finance & CAO 47912 HALYARD ROAD, SUITE 100, PLYMOUTH MI 48170
Ricardo Galvan officer: SVP, GRS ONE CENTERPOINTE DR., SUITE 200, LAKE OSWEGO OR 97035
William A Furman officer: Chairman & CEO ONE CENTERPOINTE DR, SUITE 200, LAKE OSWEGO OR 97035
William J. Krueger officer: President, GMO THE GREENBRIER COMPANIES, INC., ONE CENTERPOINTE DR., #200, LAKE OSWEGO OR 97035
Antonio O Garza director 500 W. ILLINOIS, SUITE 100, MIDLAND TX 79701
Brian J Comstock officer: EVP, Sales and Marketing 19262 S REDLAND ROAD, OREGON CITY OR 97045
Donald A Washburn director 222 SW HARRISON STREET, APT 23C, PORTLAND OR 97201
James R Huffines director C/O PLAINSCAPITAL CORPORATION, 2323 VICTORY AVENUE. SUITE 1400, DALLAS TX 75219
Alejandro Centurion officer: EVP and President, GMO ONE CENTERPOINTE AVE., STE. 200, LAKE OSWEGO OR 97035
Mark J Rittenbaum officer: EVP, Chief Comm & Leasing Off
Duane Charles Mcdougall director C/O INFOCUS CORP, 277008 SW PARKWAY AVE, WILSONVILLE OR 97070