GURUFOCUS.COM » STOCK LIST » Technology » Hardware » TT Electronics PLC (FRA:7TT) » Definitions » Financial Strength

TT Electronics (FRA:7TT) Financial Strength : 6 (As of Jun. 2024)


View and export this data going back to 2018. Start your Free Trial

What is TT Electronics Financial Strength?

TT Electronics has the Financial Strength Rank of 6.

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.

TT Electronics's Interest Coverage for the quarter that ended in Jun. 2024 was 2.52. TT Electronics's debt to revenue ratio for the quarter that ended in Jun. 2024 was 0.35. As of today, TT Electronics's Altman Z-Score is 1.94.


Competitive Comparison of TT Electronics's Financial Strength

For the Electronic Components subindustry, TT Electronics'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.


TT Electronics's Financial Strength Distribution in the Hardware Industry

For the Hardware industry and Technology sector, TT Electronics's Financial Strength distribution charts can be found below:

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



TT Electronics 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:

TT Electronics's Interest Expense for the months ended in Jun. 2024 was €-7.1 Mil. Its Operating Income for the months ended in Jun. 2024 was €17.8 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2024 was €222.6 Mil.

TT Electronics's Interest Coverage for the quarter that ended in Jun. 2024 is

Interest Coverage=-1*Operating Income (Q: Jun. 2024 )/Interest Expense (Q: Jun. 2024 )
=-1*17.847/-7.092
=2.52

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

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

TT Electronics's Debt to Revenue Ratio for the quarter that ended in Jun. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(4.491 + 222.558) / 648.646
=0.35

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.

TT Electronics has a Z-score of 1.94, indicating it is in Grey Zones. This implies that TT Electronics 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 1.94 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.


TT Electronics  (FRA:7TT) 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.

TT Electronics has the Financial Strength Rank of 6.


TT Electronics Financial Strength Related Terms

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


TT Electronics Business Description

Traded in Other Exchanges
Address
West Street, Fourth Floor, St Andrews House, Woking, Surrey, GBR, GU21 6EB
TT Electronics PLC provides engineered electronics for performance-critical applications across Healthcare, Aerospace and Defense, Automation and electrification, and Distribution markets. It operates in three segments: Power and Connectivity, Global Manufacturing Solutions, and Sensors and Specialist Components. Its products consist of connectors, optoelectronics, resistors, semiconductors, and electromagnetics. Its brands include AB Connectors, Aero Stanrew, Power Partners, Semelab, Welwyn Components, and Precision. The geographical segments are the United Kingdom, the Rest of Europe, North America, Asia, and the Rest of the World. It generates maximum revenue from Global Manufacturing Solutions, which provides manufacturing services and engineering solutions.

TT Electronics Headlines

No Headlines