What is Alcoa Financial Strength?
Alcoa 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.
Alcoa's Interest Coverage for the quarter that ended in Sep. 2016 was 2.76.
Alcoa's debt to revenue ratio for the quarter that ended in Sep. 2016 was 0.49.
As of today, Alcoa's Altman Z-Score is 1.06.
Competitive Comparison of Alcoa's Financial Strength
For the Aluminum subindustry, Alcoa'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.
Alcoa's Financial Strength Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Alcoa's Financial Strength distribution charts can be found below:
* The bar in red indicates where Alcoa's Financial Strength falls into.
Alcoa 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:
Alcoa's Interest Expense for the
months ended in Sep. 2016 was $-133.00 Mil. Its Operating Income for the
months ended in Sep. 2016 was $367.00 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2016 was $9,501.00 Mil.
Alcoa's Interest Coverage for the quarter that ended in Sep. 2016 is
The higher the ratio, the stronger the company's financial strength is.
2. Debt to revenue ratio. The lower, the better.
Alcoa's Debt to Revenue Ratio for the quarter that ended in Sep. 2016 is
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.
Alcoa has a Z-score of 1.06, 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.
Alcoa (ARNC.PR.PFD) Business Description
Traded in Other Exchanges
N/A
Address
Arconic Inc, formerly known as Alcoa Inc was first incorporated as the Pittsburgh Reduction Company on October 1, 1888. The Company is engaged in manufacturing and engineering lightweight metals. Its products include aluminum, titanium, and nickel, used in aerospace, automotive, commercial transportation, packaging, building and construction, oil and gas, defense, consumer electronics, and industrial applications. The Company is also engaged in the production and management of aluminum, fabricated aluminum, and alumina combined, through its active participation in all aspects of the industry: technology, mining, refining, smelting, fabricating, and recycling. It has investments and operating activities in, among others, Australia, Brazil, China, Guinea, Iceland, Russia, and Saudi Arabia. The Company operates in segments including Global Rolled Products, Engineered Products and Solutions, and Transportation and Construction Solutions. The Company's Global Rolled Products segment represents its midstream operations. The Engineered Products and Solutions segment represents a portion of the Company's downstream operations. Its downstream portfolio includes two segments Engineered Products and Solutions and Transportation and Construction Solutions. The Engineered Products and Solutions consist of Alcoa Titanium & Engineered Products; Alcoa Fastening Systems & Rings; Alcoa Forgings and Extrusions; and Alcoa Power and Propulsion. The Company's Transportation and Construction Solutions segment represents a portion of its downstream operations. The raw materials used includes bauxite, alloying materials, caustic soda, alumina, electricity, aluminum fluoride, fuel oil, calcined petroleum coke, lime (CaO), cathode blocks, natural gas, electricity, liquid pitch, natural gas, titanium alloys, titanium sponge and resin. The Company's trademark products include Howmet metal castings, Huck fasteners, Kawneer building panels and Dura-Bright wheels with easy-clean surface treatments.
Executives
| Joseph S Cantie |
director |
C/O DELPHI AUTOMOTIVE, 5725 DELPHI DRIVE, TROY MI 48098 |
| Amy E Alving |
director |
ARCONIC INC., 390 PARK AVENUE, NEW YORK NY 10022 |
| Tolga I Oal |
director, officer: Co-Chief Executive Officer |
201 ISABELLA STREET, PITTSTBURGH PA 15212 |
| John C Plant |
director, officer: Chairman and Co-CEO |
C/O MASCO CORPORATION, 17450 COLLEGE PARKWAY, LIVONIA MI 48152 |
| Jody Miller |
director |
225 SOUTH SIXTH STREET, 9TH FLOOR, MINNEAPOLIS MN 55402 |
| James F Albaugh |
director |
C/O THE BOEING COMPANY, 100 NORTH RIVERSIDE PLAZA, CHICAGO IL 60606 |
| Ulrich Schmidt |
director |
PRECISION CASTPARTS CORP., 4650 SW MACADAM AVENUE, SUITE 400, PORTLAND OR 97239 |
| Nicole Weyerhaeuser Piasecki |
director |
2000 WELLS FARGO PLACE, 30 EAST 7TH STREET, SAINT PAUL MN 55101-4930 |
| Robert F Leduc |
director |
UNITED TECHNOLOGIES CORP, 10 FARM SPRINGS ROAD, FARMINGTON CT 06032 |
| David J Miller |
director |
C/O ELLIOTT MANAGEMENT CORPORATION, 40 WEST 57TH STREET, NEW YORK NY 10019 |
| Neil Edward Marchuk |
officer: EVP, HR |
12025 TECH CENTER DRIVE, LIVONIA MI 48150 |
| Katherine H Ramundo |
officer: CLO and Corporate Secretary |
C/O APTIV, 5725 INNOVATION DRIVE, TROY MI 48098 |
| W Paul Myron |
officer: Vice President and Controller |
ALCOA INC., 390 PARK AVENUE, NEW YORK NY 10022-4608 |
| Ken Giacobbe |
officer: CFO |
ALCOA INC., 390 PARK AVENUE, NEW YORK NY 10022-4608 |
| Timothy Donald Myers |
officer: Executive Vice President |
ALCOA INC., 390 PARK AVENUE, NEW YORK NY 10022-4608 |
Alcoa (ARNC.PR.PFD) Headlines
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