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Micron Technology (NAS:MU) Financial Strength

: 6 (As of Nov. 2023)
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Micron Technology 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.

Micron Technology did not have earnings to cover the interest expense. Micron Technology's debt to revenue ratio for the quarter that ended in Nov. 2023 was 0.75. As of today, Micron Technology's Altman Z-Score is 3.60.


Competitive Comparison

For the Semiconductors subindustry, Micron Technology'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.


Micron Technology Financial Strength Distribution

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

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



Micron Technology 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:

Micron Technology's Interest Expense for the months ended in Nov. 2023 was $-132 Mil. Its Operating Income for the months ended in Nov. 2023 was $-1,128 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Nov. 2023 was $13,198 Mil.

Micron Technology's Interest Coverage for the quarter that ended in Nov. 2023 is

Micron Technology 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.

Micron Technology's Debt to Revenue Ratio for the quarter that ended in Nov. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Nov. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(908 + 13198) / 18904
=0.75

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.

Micron Technology has a Z-score of 3.60, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.6 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.


Micron Technology  (NAS:MU) 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.

Micron Technology has the Financial Strength Rank of 6.


Micron Technology Financial Strength Related Terms

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


Micron Technology (NAS:MU) Business Description

Address
8000 South Federal Way, Post Office Box 6, Boise, ID, USA, 83716-9632
Micron is one of the largest semiconductor companies in the world, specializing in memory and storage chips. Its primary revenue stream comes from dynamic random access memory, or DRAM, and it also has minority exposure to not-and or NAND, flash chips. Micron serves a global customer base, selling chips into data centers, mobile phones, consumer electronics, and industrial and automotive applications. The firm is vertically integrated.
Executives
Sanjay Mehrotra officer: President & CEO C/O WESTERN DIGITAL CORPORATION, 3355 MICHELSON DRIVE, SUITE 100, IRVINE CA 92612
Scott J Deboer officer: Vice President, R&D 8000 S FEDERAL WAY, MS 1-557, BOISE ID 83716
Scott R. Allen officer: CVP, Chief Accounting Officer 11690 N.W. 105TH STREET, MIAMI FL 33178
April L Arnzen officer: VP, Human Resources 8000 S FEDERAL WAY, MS 1-557, BOISE ID 83716
Michael W Bokan officer: SVP, WORLDWIDE SALES 8000 S FEDERAL WAY, MS 1-557, BOISE ID 83716
Sumit Sadana officer: EVP & Chief Business Officer 47544 AVALON HEIGHTS TERRACE, FREMONT CA 94539
Richard M Beyer director 6501 WILLIAM CANNON DRIVE, WEST, AUSTIN TX 78735
Manish H Bhatia officer: EVP, Global Operations C/O WESTERN DIGITAL CORPORATION, 5601 GREAT OAKS PARKWAY, SAN JOSE CA 95119
Robert P Beard officer: SVP, General Counsel&Secretary 8000 S. FEDERAL WAY, BOISE ID 83716
Mark J. Murphy officer: EVP & Chief Financial Officer DELPHI AUTOMOTIVE PLC, 5725 DELPHI DRIVE, TROY MI 48098
Joel L Poppen officer: VP Legal Affairs, Gen Counsel, other: Corporate Secretary 8000 S. FEDERAL WAY, MS 1-557, BOISE ID 83716
David Zinsner officer: SVP & Chief Financial Officer 1001 MURPHY RANCH ROAD, MILPITAS CA 95035
Linnie M Haynesworth director 214 N TRYON STREET, CHARLOTTE NC 28202
Lynn A Dugle director 4803 STONECROFT BOULEVARD, CHANTILLY VA 20151
Paul Marosvari officer: VP, Chief Accounting Officer 8000 S. FEDERAL WAY, BOISE ID 83716