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ACI (Albertsons) Financial Strength : 5 (As of Feb. 2025)


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What is Albertsons Financial Strength?

Albertsons 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.

Albertsons's Interest Coverage for the quarter that ended in Feb. 2025 was 3.28. Albertsons's debt to revenue ratio for the quarter that ended in Feb. 2025 was 0.19. As of today, Albertsons's Altman Z-Score is 3.56.


Competitive Comparison of Albertsons's Financial Strength

For the Grocery Stores subindustry, Albertsons'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.


Albertsons's Financial Strength Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Albertsons's Financial Strength distribution charts can be found below:

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


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Albertsons 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:

Albertsons's Interest Expense for the months ended in Feb. 2025 was $-95 Mil. Its Operating Income for the months ended in Feb. 2025 was $312 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Feb. 2025 was $13,420 Mil.

Albertsons's Interest Coverage for the quarter that ended in Feb. 2025 is

Interest Coverage=-1*Operating Income (Q: Feb. 2025 )/Interest Expense (Q: Feb. 2025 )
=-1*312.4/-95.3
=3.28

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

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

Albertsons's Debt to Revenue Ratio for the quarter that ended in Feb. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Feb. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(763.1 + 13419.7) / 75198
=0.19

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.

Albertsons has a Z-score of 3.56, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.56 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.


Albertsons  (NYSE:ACI) 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.

Albertsons has the Financial Strength Rank of 5.


Albertsons Financial Strength Related Terms

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


Albertsons Business Description

Traded in Other Exchanges
Address
250 Parkcenter Boulevard, Boise, ID, USA, 83706
Albertsons is the second-largest supermarket operator in the United States with more than 2,200 stores across a variety of banners. Around 80% of the firm's sales comes from nonperishable and fresh food, of which 25% comes from its portfolio of private brands. The company operates fuel centers at about 20% of its store locations and pharmacies at 75%. Albertsons went public in 2020 following years of ownership under private equity firm Cerberus Capital Management, which still owns about a fourth of the outstanding shares.
Executives
Mohammad Omer Gajial officer: EVP, Pharmacy & Health 250 E. PARKCENTER BLVD., BOISE ID 83706
Robert Bruce Larson officer: Chief Accounting Officer 3103 S OLD HICKORY, BOISE ID 83712
Anuj Dhanda officer: See Remarks ALBERTSONS COMPANIES, INC., 250 PARKCENTER BOULEVARD, BOISE ID 83706
Thomas M Moriarty officer: EVP General Counsel & CPO 100 PARSONS POND DRIVE, FRANKLIN LAKES NJ 07417
Klaff Realty Lp 10 percent owner, other: See Remarks 180 N. MICHIGAN AVE, SUITE 300, CHICAGO IL 60601
Jubilee Abs Holding Llc other: See Footnote (2) 4300 E. FIFTH AVE., COLUMBUS OH 43219
Kimco Realty Corp other: See Remarks 500 NORTH BROADWAY, SUITE 201, JERICHO NY 11753
Susan Morris officer: See Remarks ALBERTSONS COMPANIES, INC., 250 PARKCENTER BOULEVARD, BOISE ID 83706
Evan Rainwater officer: EVP, Supp Chain&Manufacturing 250 E. PARKCENTER BLVD., BOISE ID 83706
Chris Rupp officer: See Remarks ALBERTSONS COMPANIES, INC., 250 PARKCENTER BOULEVARD, BOISE ID 83706
Sharon Mccollam officer: President & CFO C/O OFFICEMAX INCORPORATED, 263 SHUMAN BLVD., NAPERVILLE IL 60563
Jennifer Saenz officer: Chief Marketing Officer 250 E. PARKCENTER BLVD., BOISE ID 83706
Chan Galbato director 191 E NORTH AVENUE, CAROL STREAM IL 60188
Stone West Mary E director C/O HASBRO, INC., 1011 NEWPORT AVENUE, PAWTUCKET RI 02861
Shant Babikian director C/O HPS INVESTMENT PARTNERS, LLC, 40 WEST 57TH STREET, 33RD FLOO NY 10019