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Hill-Rom Holdings (Hill-Rom Holdings) Financial Strength : 0 (As of Sep. 2021)


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What is Hill-Rom Holdings Financial Strength?

Hill-Rom Holdings 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.

Hill-Rom Holdings's Interest Coverage for the quarter that ended in Sep. 2021 was 8.09. Hill-Rom Holdings's debt to revenue ratio for the quarter that ended in Sep. 2021 was 0.65. As of today, Hill-Rom Holdings's Altman Z-Score is 3.57.


Competitive Comparison of Hill-Rom Holdings's Financial Strength

For the Medical Instruments & Supplies subindustry, Hill-Rom Holdings'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.


Hill-Rom Holdings's Financial Strength Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Hill-Rom Holdings's Financial Strength distribution charts can be found below:

* The bar in red indicates where Hill-Rom Holdings's Financial Strength falls into.



Hill-Rom Holdings 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:

Hill-Rom Holdings's Interest Expense for the months ended in Sep. 2021 was $-15 Mil. Its Operating Income for the months ended in Sep. 2021 was $121 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2021 was $1,825 Mil.

Hill-Rom Holdings's Interest Coverage for the quarter that ended in Sep. 2021 is

Interest Coverage=-1*Operating Income (Q: Sep. 2021 )/Interest Expense (Q: Sep. 2021 )
=-1*121.4/-15
=8.09

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

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

Hill-Rom Holdings's Debt to Revenue Ratio for the quarter that ended in Sep. 2021 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2021 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(235.7 + 1825.2) / 3191.6
=0.65

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.

Hill-Rom Holdings has a Z-score of 3.57, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.57 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.


Hill-Rom Holdings  (NYSE:HRC) 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.

Hill-Rom Holdings has the Financial Strength Rank of 0.


Hill-Rom Holdings Financial Strength Related Terms

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


Hill-Rom Holdings (Hill-Rom Holdings) Business Description

Traded in Other Exchanges
N/A
Address
130 East Randolph Street, Suite 1000, Chicago, IL, USA, 60601
Hill-Rom Holdings Inc is a global provider of hospital equipment and medical supplies, including hospital beds for high- and low-acuity settings. Hill-Rom reports financial data across three operating segments: patient support systems (50% of fiscal 2018 sales), front-line care (34%), and surgical solutions (16%). The firm has significant operations internationally, with roughly 30% of revenue derived from international sources and the remaining 70% from its U.S. business.
Executives
Mary Kay Ladone officer: SVP, Corp. Dev., Strat. & IR 130 EAST RANDOLPH STREET, SUITE 1000, CHICAGO IL 60601
Deborah Rasin officer: SVP, Chief Legal Officer TWO PRUDENTIAL PLAZA, SUITE 4100, CHICAGO IL 60601
Paul Sherwood Johnson officer: SVP & Pres. - PSS Acute Care TWO PRUDENTIAL PLAZA 180 NORTH STETSON AVENUE, SUITE 4100 CHICAGO IL 60601
Andreas G Frank officer: SVP, Pres. Front Line Care C/O DENTSPLY SIRONA INC, 13320 BALLANTYNE CORPORATE PLACE, CHARLOTTE NC 28277
Richard M Wagner officer: Corporate Controller 221 WEST PHILADELPHIA STREET, SUITE 60W, YORK PA 17401-2991
Amy M. Dodrill officer: President - Surgical Solutions 130 EAST RANDOLPH STREET, SUITE 1000, CHICAGO IL 60601
Gary Lee Ellis director THE TORO COMPANY, 8111 LYNDALE AVENUE SOUTH, BLOOMINGTON MN 55420
Mary Garrett director ETHAN ALLEN DRIVE, DANBURY CT 06811
Gregory J. Moore director 130 EAST RANDOLPH STREET, SUITE 1000, CHICAGO IL 60601
William Kucheman director C/O DAN DUGAN, FINANCIAL PERSPECTIVES, 3025 HARBOR LN., SUITE 200, PLYMOUTH MN 55447
James R Giertz director
Ronald A Malone director 3 HUNTINGTON QUADRANGLE, SUITE 200S, MELVILLE NY 11747
Felicia F Norwood director 120 MONUMENT CIRCLE, INDIANAPOLIS IN 46204
William G Dempsey director C/O LANDAUER, INC., 2 SCIENCE ROAD, GLENWOOD IL 60425
Nancy M Schlichting director 200 WILMOT ROAD, DEERFIELD IL 60015