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Infineon Technologies AG (Infineon Technologies AG) Financial Strength

: 7 (As of Dec. 2023)
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Infineon Technologies AG has the Financial Strength Rank of 7.

Good Sign:

Infineon Technologies AG shows strong financial strength.

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.

Infineon Technologies AG's Interest Coverage for the quarter that ended in Dec. 2023 was 78.00. Infineon Technologies AG's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.39. As of today, Infineon Technologies AG's Altman Z-Score is 3.79.


Competitive Comparison

For the Semiconductors subindustry, Infineon Technologies AG'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.


Infineon Technologies AG Financial Strength Distribution

For the Semiconductors industry and Technology sector, Infineon Technologies AG's Financial Strength distribution charts can be found below:

* The bar in red indicates where Infineon Technologies AG's Financial Strength falls into.



Infineon Technologies AG 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:

Infineon Technologies AG's Interest Expense for the months ended in Dec. 2023 was $-10 Mil. Its Operating Income for the months ended in Dec. 2023 was $766 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $5,052 Mil.

Infineon Technologies AG's Interest Coverage for the quarter that ended in Dec. 2023 is

Interest Coverage=-1*Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*765.54/-9.815
=78.00

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

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

Infineon Technologies AG's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1242.094 + 5052.345) / 16148.308
=0.39

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.

Infineon Technologies AG has a Z-score of 3.79, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.79 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.


Infineon Technologies AG  (OTCPK:IFNNY) 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.

Infineon Technologies AG has the Financial Strength Rank of 7.


Infineon Technologies AG Financial Strength Related Terms

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Infineon Technologies AG (Infineon Technologies AG) Business Description

Address
Am Campeon 1-15, Neubiberg, Munich, DEU, 85579
Infineon Technologies AG headquartered in Munich, was spun off from German industrial conglomerate Siemens in 2000 and today is one of Europe's largest chipmakers. The company is a leader in the automotive semiconductor market with prominent products used in active safety and powertrain content within vehicles. Infineon is also the market leader in power semiconductors used to deliver voltage within a wide variety of electrical systems. The company operates in four segments: automotive, or ATV, green industrial power, or GIP, power and sensor systems, or PSS, and connected secure systems, or CSS.

Infineon Technologies AG (Infineon Technologies AG) Headlines