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Great Plains Energy (Great Plains Energy) Financial Strength : 0 (As of Mar. 2018)


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What is Great Plains Energy Financial Strength?

Great Plains Energy has the Financial Strength Rank of 0.

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.

Great Plains Energy's Interest Coverage for the quarter that ended in Mar. 2018 was 1.85. Great Plains Energy's debt to revenue ratio for the quarter that ended in Mar. 2018 was 1.86. As of today, Great Plains Energy's Altman Z-Score is 0.00.


Competitive Comparison of Great Plains Energy's Financial Strength

For the Utilities - Regulated Electric subindustry, Great Plains Energy'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.


Great Plains Energy's Financial Strength Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Great Plains Energy's Financial Strength distribution charts can be found below:

* The bar in red indicates where Great Plains Energy's Financial Strength falls into.



Great Plains Energy 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:

Great Plains Energy's Interest Expense for the months ended in Mar. 2018 was $-48 Mil. Its Operating Income for the months ended in Mar. 2018 was $89 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2018 was $3,609 Mil.

Great Plains Energy's Interest Coverage for the quarter that ended in Mar. 2018 is

Interest Coverage=-1*Operating Income (Q: Mar. 2018 )/Interest Expense (Q: Mar. 2018 )
=-1*89.2/-48.1
=1.85

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

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

Great Plains Energy's Debt to Revenue Ratio for the quarter that ended in Mar. 2018 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2018 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(727.9 + 3608.5) / 2335.6
=1.86

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.

Great Plains Energy has a Z-score of 0.00, indicating it is in Distress Zones. This implies bankrupcy 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.


Great Plains Energy  (NYSE:GXP) 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.

Great Plains Energy has the Financial Strength Rank of 0.


Great Plains Energy Financial Strength Related Terms

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Great Plains Energy (Great Plains Energy) Business Description

Traded in Other Exchanges
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Address
Great Plains Energy is the holding company of Kansas City Power & Light and Greater Missouri Operations. The two regulated utilities provide electric service to roughly 900,000 customers in the Kansas City area and nearby western Missouri and eastern Kansas. The company has about 6.5 gigawatts of generating capacity. More than 80% of its electricity generation is from coal-fired plants, approximately 15% comes from its co-owned Wolf Creek nuclear plant, and the remainder is from gas, oil, and wind farms.

Great Plains Energy (Great Plains Energy) Headlines

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