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Science Applications International (LTS:0V9N) Financial Strength : 5 (As of Jul. 2024)


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What is Science Applications International Financial Strength?

Science Applications International 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.

Science Applications International's Interest Coverage for the quarter that ended in Jul. 2024 was 4.32. Science Applications International's debt to revenue ratio for the quarter that ended in Jul. 2024 was 0.32. As of today, Science Applications International's Altman Z-Score is 3.26.


Competitive Comparison of Science Applications International's Financial Strength

For the Information Technology Services subindustry, Science Applications International'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.


Science Applications International's Financial Strength Distribution in the Software Industry

For the Software industry and Technology sector, Science Applications International's Financial Strength distribution charts can be found below:

* The bar in red indicates where Science Applications International's Financial Strength falls into.



Science Applications International 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:

Science Applications International's Interest Expense for the months ended in Jul. 2024 was $-31 Mil. Its Operating Income for the months ended in Jul. 2024 was $134 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jul. 2024 was $2,128 Mil.

Science Applications International's Interest Coverage for the quarter that ended in Jul. 2024 is

Interest Coverage=-1*Operating Income (Q: Jul. 2024 )/Interest Expense (Q: Jul. 2024 )
=-1*134/-31
=4.32

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

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

Science Applications International's Debt to Revenue Ratio for the quarter that ended in Jul. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Jul. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(197 + 2128) / 7272
=0.32

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.

Science Applications International has a Z-score of 3.26, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.26 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.


Science Applications International  (LTS:0V9N) 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.

Science Applications International has the Financial Strength Rank of 5.


Science Applications International Financial Strength Related Terms

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Science Applications International Business Description

Traded in Other Exchanges
Address
12010 Sunset Hills Road, Reston, VA, USA, 20190
Science Applications International Corp provides technical, engineering, and enterprise IT services mainly to the U.S. government. Specifically, the company offers engineering, systems integration, and information technology for large government projects and a broad range of services with an emphasis on higher-end technology services. The company's end-to-end enterprise IT offerings span the entire spectrum of customers' IT infrastructure.

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