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SEI (Solaris Energy Infrastructure) Financial Strength : 5 (As of Dec. 2024)


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What is Solaris Energy Infrastructure Financial Strength?

Solaris Energy Infrastructure has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and 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.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Solaris Energy Infrastructure's Interest Coverage for the quarter that ended in Dec. 2024 was 2.47. Solaris Energy Infrastructure's debt to revenue ratio for the quarter that ended in Dec. 2024 was 0.85. As of today, Solaris Energy Infrastructure's Altman Z-Score is 1.53.


Competitive Comparison of Solaris Energy Infrastructure's Financial Strength

For the Oil & Gas Equipment & Services subindustry, Solaris Energy Infrastructure'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.


Solaris Energy Infrastructure's Financial Strength Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Solaris Energy Infrastructure's Financial Strength distribution charts can be found below:

* The bar in red indicates where Solaris Energy Infrastructure's Financial Strength falls into.


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Solaris Energy Infrastructure 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:

Solaris Energy Infrastructure's Interest Expense for the months ended in Dec. 2024 was $-7.4 Mil. Its Operating Income for the months ended in Dec. 2024 was $18.3 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was $316.8 Mil.

Solaris Energy Infrastructure's Interest Coverage for the quarter that ended in Dec. 2024 is

Interest Coverage=-1*Operating Income (Q: Dec. 2024 )/Interest Expense (Q: Dec. 2024 )
=-1*18.278/-7.392
=2.47

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

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

Solaris Energy Infrastructure's Debt to Revenue Ratio for the quarter that ended in Dec. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(12.031 + 316.845) / 385.188
=0.85

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.

Solaris Energy Infrastructure has a Z-score of 1.53, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.53 is in distress zone. This implies bankruptcy 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.


Solaris Energy Infrastructure  (NYSE:SEI) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Solaris Energy Infrastructure has the Financial Strength Rank of 5.


Solaris Energy Infrastructure Financial Strength Related Terms

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


Solaris Energy Infrastructure Business Description

Traded in Other Exchanges
Address
9651 Katy Freeway, Suite 300, Houston, TX, USA, 77024
Solaris Energy Infrastructure Inc provides services in the oil and gas industry. Its solutions are Solaris software suite, Fluid management system, Automated control systems, Field services, Last mile management, Wet sand solutions, Power Solutions, and Integrated wellsite solution. Its segment include Solaris Power Solutions and Solaris Logistics Solutions. It derives maximum revenue from Solaris Logistics Solutions segment.
Executives
Laurie H Argo director 1100 LOUISIANA STREET, SUITE 1000, HOUSTON TX 77002
William A Zartler director 600 TRAVIS STREET, SUITE 2310, HOUSTON TX 77002
James R Burke director
Aj Teague director 1100 LOUISIANA 10TH FLOOR, HOUSTON TX 77002
Keenan W Howard Jr director 410 PARK AVENUE, 20TH FLOOR, NEW YORK NY 10022
Yorktown Energy Partners X, L.p. 10 percent owner 410 PARK AVENUE, 20TH FLOOR, NEW YORK NY 10022
Walker Ray N Jr director 100 THROCKMORTON, STE 1200, FORT WORTH TX 76102
Christopher M Powell officer: General Counsel 9811 KATY FREEWAY, STE. 700, HOUSTON TX 77024
Thrc Holdings, Lp 10 percent owner 17018 INTERSTATE 20, CISCO TX 76437
Cynthia M. Durrett officer: Chief Administrative Officer 9811 KATY FREEWAY, SUITE 900, HOUSTON TX 77024
Christopher P. Wirtz officer: CHIEF ACCOUNTING OFFICER 9811 KATY FREEWAY, SUITE 700, HOUSTON TX 77024
Lindsay R. Bourg officer: Chief Accounting Officer 1415 LOUISIANA STREET, SUITE 1600, HOUSTON TX 77002
Kelly L. Price officer: Chief Operating Officer 9811 KATY FREEWAY, SUITE 900, HOUSTON TX 77024
Kyle S. Ramachandran officer: Chief Financial Officer 9811 KATY FREEWAY, SUITE 900, HOUSTON TX 77024
Thrc Management, Llc 10 percent owner 17018 INTERSTATE 20, CISCO TX 76437