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Aptiv (NYSE:APTV) Financial Strength

: 6 (As of Sep. 2022)
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Aptiv 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.

Aptiv's Interest Coverage for the quarter that ended in Sep. 2022 was 8.29. Aptiv's debt to revenue ratio for the quarter that ended in Sep. 2022 was 0.37. As of today, Aptiv's Altman Z-Score is 3.26.


Aptiv (NYSE:APTV) Financial Strength Competitive Comparison

For the Auto Parts subindustry, Aptiv'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.

   

Aptiv (NYSE:APTV) Financial Strength Distribution

For the Vehicles & Parts industry and Consumer Cyclical sector, Aptiv's Financial Strength distribution charts can be found below:

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



Aptiv 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:

Aptiv's Interest Expense for the months ended in Sep. 2022 was $-58 Mil. Its Operating Income for the months ended in Sep. 2022 was $481 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2022 was $6,661 Mil.

Aptiv's Interest Coverage for the quarter that ended in Sep. 2022 is

Interest Coverage=-1*Operating Income (Q: Sep. 2022 )/Interest Expense (Q: Sep. 2022 )
=-1*481/-58
=8.29

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

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

Aptiv's Debt to Revenue Ratio for the quarter that ended in Sep. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(112 + 6661) / 18456
=0.37

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.

Aptiv 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.


Aptiv  (NYSE:APTV) 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.

Aptiv has the Financial Strength Rank of 6.


Aptiv Financial Strength Related Terms

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


Aptiv (NYSE:APTV) Business Description

Aptiv logo
Address
5 Hanover Quay, Grand Canal Dock, Dublin, IRL, D02 VY79
Aptiv's signal and power solutions segment supplies components and systems that make up a vehicle's electrical system backbone, including wiring assemblies and harnesses, connectors, electrical centers, and hybrid electrical systems. The advanced safety and user experience segment provides body controls, infotainment and connectivity systems, passive and active safety electronics, advanced driver-assist technologies, and displays, as well as the development of software for these systems. Aptiv's largest customer is General Motors at roughly 12% of 2021 revenue, including sales to GM's Shanghai joint venture, followed by Stellantis at 11%, and Volkswagen at 9%. North America and Europe represented approximately 38% and 33% of total 2019 revenue, respectively.
Executives
Velastegui Sophia officer: SVP & Chief Product Officer 21300 VICTORY BLVD. 12TH FLOOR WOODLAND HILLS CA 91367
Janow Merit E director C/O TRIMBLE INC. 935 STEWART DRIVE SUNNYVALE CA 94085
Ramundo Katherine H officer: SVP, CLO, CCO & Secretary C/O APTIV 5725 INNOVATION DRIVE TROY MI 48098
Presley William T. officer: SVP & President, S&PS 5725 INNOVATION DRIVE TROY MI 48098
Clemmer Richard L director P O BOX 34552 LAS VEGAS NV 89129
Hooley Joseph L director STATE STREET CORPORATION ONE LINCOLN STREET BOSTON MA 02111
Meister Paul M director 18 SHIP ROCK ROAD NORTH HAMPTON NH 03862
Ortberg Robert Kelly director 870 WINTER STREET WALTHAM MA 02451
Trickett Mariya K. officer: SVP and CHRO 5725 INNOVATION DRIVE TROY MI 48098
Cooper Nancy E director 26 CHERRY TREE LANE RIVERSIDE CT 06878
Parris Colin J. director 5725 DELPHI DRIVE TROY MI 48098
Dellaquila Frank J director EMERSON ELECTRIC CO. 8000 W. FLORISSANT AVENUE ST. LOUIS MO 63136
De Vos Glen W. officer: SVP & CTO 5725 INNOVATION DRIVE TROY MI 48098
Paja David officer: SVP & President, E&S 5725 DELPHI DRIVE TROY MI 48098
Dorlack Jerome J. officer: SVP& President DEEDS 5725 DELPHI DRIVE TROY MI 48098

Aptiv (NYSE:APTV) Headlines

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