Mercury Systems (NAS:MRCY) Financial Strength

: 5 (As of Jun. 2023)

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Mercury Systems has the Financial Strength Rank of 5.

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.

Mercury Systems did not have earnings to cover the interest expense. Mercury Systems's debt to revenue ratio for the quarter that ended in Jun. 2023 was 0.57. As of today, Mercury Systems's Altman Z-Score is 2.54.

Competitive Comparison

For the Aerospace & Defense subindustry, Mercury Systems'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.

Annual Data Quarterly Data

Mercury Systems Financial Strength Distribution

For the Aerospace & Defense industry and Industrials sector, Mercury Systems's Financial Strength distribution charts can be found below:

* The bar in red indicates where Mercury Systems's Financial Strength falls in comparison to its industry or sector. The grey bar indicates the Financial Strength's extreme value range as defined by GuruFocus.

Mercury Systems 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:

Mercury Systems's Interest Expense for the months ended in Jun. 2023 was $-7.3 Mil. Its Operating Income for the months ended in Jun. 2023 was $-4.9 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2023 was $578.3 Mil.

Mercury Systems's Interest Coverage for the quarter that ended in Jun. 2023 is

Mercury Systems did not have earnings to cover the interest expense.

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

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

Mercury Systems's Debt to Revenue Ratio for the quarter that ended in Jun. 2023 is

Debt to Revenue Ratio	=	Total Debt (Q: Jun. 2023 )			/	Revenue
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Revenue
	=	(0	+	578.297)	/	1012.944
	=	0.57

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.

Mercury Systems has a Z-score of 2.54, indicating it is in Grey Zones. This implies that Mercury Systems is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.54 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* 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.

Mercury Systems (NAS:MRCY) 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.

Mercury Systems has the Financial Strength Rank of 5.

Mercury Systems Financial Strength Related Terms

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

Mercury Systems (NAS:MRCY) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Mercury Systems Inc (NAS:MRCY) » Definitions » Financial Strength

Comparable Companies

Traded in Other Exchanges

MCY:Germany

Address

50 Minuteman Road, Andover, MA, USA, 01810

Website

https://www.mrcy.com

Mercury Systems Inc is a commercial technology company serving the aerospace and defense industry. The company envisions, creates and delivers secure open architecture solutions powering a broad range of mission-critical applications in the challenging and demanding environments. Inspired by its purpose of delivering Innovation that Matters, By and For People Who Matter, Mercury helps make the world a safer, more secure place for all.

Executives

Howard L Lance	director	C/O SUMMIT MATERIALS, INC., 1550 WYNKOOP STREET, 3RD FLOOR, DENVER CO 80202
Wells Charles Roger Iv	officer: EVP President Microelectronics	5255 GROVEMONT DRIVE, ELKRIDGE MD 21075
William L Ballhaus	director, officer: President & CEO	3190 FAIRVIEW PARK DRIVE, SUITE 700, FALLS CHURCH VA 22042
Allen Couture	officer: EVP, Execution Excellence	C/O MERCURY SYSTEMS, INC., 50 MINUTEMAN ROAD, ANDOVER MA 01810
David E. Farnsworth	officer: EVP, CFO & Treasurer	C/O MERCURY SYSTEMS, INC., 50 MINUTEMAN ROAD, ANDOVER MA 01810
Jana Partners Llc	director, other: See Remarks	767 FIFTH AVENUE, 8TH FLOOR, NEW YORK NY 10153
Scott Ostfeld	director	767 FIFTH AVENUE, 8TH FLOOR, NEW YORK NY 10153
Roger A Krone	director
Gerard J Demuro	director
Christine Fox Harbison	officer: EVP and Chief Growth Officer	50 MINUTEMAN ROAD, ANDOVER MA 01810
Thomas Huber	officer: EVP Chief Transformation Offic	218 BIRD ROAD, CORAL GABLES FL 33146
James Mitch Stevison	officer: EVP, President Mission Systems	103 SANSBERRY LANE, MADISON AL 35376
Mark Aslett	director, officer: President and CEO
Christopher C Cambria	officer: EVP, Gen Counsel & Secretary	C/O GENCORP INC., P.O. BOX 537012, SACRAMENTO CA 95853-7012
Michael Ruppert	officer: EVP, CFO and Treasurer	50 MINUTEMAN ROAD, ANDOVER MA 01810