What is Seagate Technology Holdings Financial Strength?
Seagate Technology Holdings has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Seagate Technology Holdings PLC displays poor financial strength. Usually, this is caused by too much debt for the company.
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.
Seagate Technology Holdings's Interest Coverage for the quarter that ended in Mar. 2024 was 1.77.
Seagate Technology Holdings's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.86.
As of today, Seagate Technology Holdings's Altman Z-Score is 0.20.
Competitive Comparison of Seagate Technology Holdings's Financial Strength
For the Computer Hardware subindustry, Seagate Technology Holdings'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.
Seagate Technology Holdings's Financial Strength Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Seagate Technology Holdings's Financial Strength distribution charts can be found below:
* The bar in red indicates where Seagate Technology Holdings's Financial Strength falls into.
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:
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.
Seagate Technology Holdings has a Z-score of 0.20, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 0.2 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.
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.
Seagate Technology Holdings has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Seagate Technology Holdings Financial Strength Related Terms
Thank you for viewing the detailed overview of Seagate Technology Holdings's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
Seagate Technology Holdings (Seagate Technology Holdings) Business Description
Seagate is a leading supplier of hard disk drives for data storage to the enterprise and consumer markets. It forms a practical duopoly in the market with its chief rival, Western Digital; they are both vertically integrated.
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