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Invensys (FRA:SBPD) Financial Strength : 0 (As of Sep. 2013)


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What is Invensys Financial Strength?

Invensys 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.

Invensys's Interest Coverage for the quarter that ended in Sep. 2013 was 26.67. Invensys's debt to revenue ratio for the quarter that ended in Sep. 2013 was 0.00. As of today, Invensys's Altman Z-Score is 0.00.


Competitive Comparison of Invensys's Financial Strength

For the Specialty Industrial Machinery subindustry, Invensys'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.


Invensys's Financial Strength Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Invensys's Financial Strength distribution charts can be found below:

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



Invensys 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:

Invensys's Interest Expense for the months ended in Sep. 2013 was €-4 Mil. Its Operating Income for the months ended in Sep. 2013 was €95 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2013 was €0 Mil.

Invensys's Interest Coverage for the quarter that ended in Sep. 2013 is

Interest Coverage=-1*Operating Income (Q: Sep. 2013 )/Interest Expense (Q: Sep. 2013 )
=-1*94.984/-3.562
=26.67

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

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

Invensys's Debt to Revenue Ratio for the quarter that ended in Sep. 2013 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2013 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1.187 + 0) / 2046.908
=0.00

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.

Invensys 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.


Invensys  (FRA:SBPD) 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.

Invensys has the Financial Strength Rank of 0.


Invensys Financial Strength Related Terms

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


Invensys (FRA:SBPD) Business Description

Traded in Other Exchanges
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Address
Invensys PLC is a technology company that works in partnership with industrial and commercial customers to design and supply advanced technologies that optimise operational performance and profitability. The Company is grouped into four new business segments - Software, Industrial Automation, Energy Controls and Appliance. The Company's divisions include; Invensys Operations Management which is a technology, software and consulting business that creates and applies technologies to enable the safe and efficient operation of industrial and commercial operations such as oil refineries, fossil fuel and nuclear power plants, petrochemical works and other manufacturing sites. Invensys Controls designs, engineers and manufactures products, components, systems and services used in appliances, heating, air conditioning/cooling and refrigeration products across a range of industries in residential and commercial markets. The Software segment consists of the software businesses previously within Invensys Operations Management and includes Wonderware, SimSciTM and Avantis brands. Industrial Automation segment consists of the systems businesses of our Foxboro distributed control systems (DCS) and Triconex safety systems with the addition of the Foxboro measurement and instrumentation products previously within the equipment business of Invensys Operations Management. Energy Controls segment consists of the Eurotherm and IMServ businesses previously included within the equipment business of Invensys Operations Management, together with the residential heating and commercial businesses that were formerly part of Invensys Controls. Appliance segment consists of the Appliance controls line of business previously within Invensys Controls, together with the appliance replacement parts business formerly within Wholesale, also part of the former Invensys Controls.

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