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American Woodmark (American Woodmark) Financial Strength : 7 (As of Jan. 2024)


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What is American Woodmark Financial Strength?

American Woodmark has the Financial Strength Rank of 7.

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.

American Woodmark's Interest Coverage for the quarter that ended in Jan. 2024 was 14.43. American Woodmark's debt to revenue ratio for the quarter that ended in Jan. 2024 was 0.30. As of today, American Woodmark's Altman Z-Score is 3.46.


Competitive Comparison of American Woodmark's Financial Strength

For the Furnishings, Fixtures & Appliances subindustry, American Woodmark'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.


American Woodmark's Financial Strength Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, American Woodmark's Financial Strength distribution charts can be found below:

* The bar in red indicates where American Woodmark's Financial Strength falls into.



American Woodmark 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:

American Woodmark's Interest Expense for the months ended in Jan. 2024 was $-2 Mil. Its Operating Income for the months ended in Jan. 2024 was $28 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2024 was $482 Mil.

American Woodmark's Interest Coverage for the quarter that ended in Jan. 2024 is

Interest Coverage=-1*Operating Income (Q: Jan. 2024 )/Interest Expense (Q: Jan. 2024 )
=-1*27.879/-1.932
=14.43

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

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

American Woodmark's Debt to Revenue Ratio for the quarter that ended in Jan. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Jan. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(28.855 + 482.075) / 1688.408
=0.30

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.

American Woodmark has a Z-score of 3.46, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.46 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.


American Woodmark  (NAS:AMWD) 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.

American Woodmark has the Financial Strength Rank of 7.


American Woodmark Financial Strength Related Terms

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


American Woodmark (American Woodmark) Business Description

Traded in Other Exchanges
Address
561 Shady Elm Road, Winchester, VA, USA, 22602
American Woodmark Corp manufactures and distributes kitchen cabinets and vanities for the remodeling and new home construction markets. The company offers framed stock cabinets in over 400 different cabinet lines and prices from relatively inexpensive to medium-priced styles. Its products are sold on a national basis across the United States to the remodeling and new home construction markets. The products are sold under the brand names American Woodmark, Simply Woodmark, Timberlake, Shenandoah Cabinetry, Shenandoah Value Series, and Waypoint Living Spaces.
Executives
Andrew B Cogan director C/O KNOLL INC., 1235 WATER STREET, EAST GREENVILLE PA 18041
Vance W Tang director C/O KONE INC., 4225 NAPERVILLE ROAD, SUITE 400, LISLE IL 60532
Michael Scott Culbreth officer: SVP & CFO 3102 SHAWNEE DRIVE, WINCHESTER VA 22601
Latasha Akoma director 2254 BALSAN WAY, WELLINGTON FL 33414
Emily Cavanagh Videtto director 1901 WEST 4TH STREET, PELLA IA 50219
David A Rodriguez director 10400 FERNWOOD ROAD, BETHESDA MD 20817
Daniel T Hendrix director 2859 PACES ROAD, ATLANTA GA 30339
Paul Joachimczyk officer: VP & CFO C/O TOPBUILD CORP., 260 JIMMY ANN DRIVE, DAYTONA BEACH FL 32114
Adams Robert J Jr officer: SVP Value Stream Operations 3102 SHAWNEE DRIVE, WINCHESTER VA 22601
Roger Perry Campbell officer: SVP & GM New Construction 3102 SHAWNEE DRIVE, WINCHESTER VA 22601
Steven Cary Dunston officer: Senior VP, Manufacturing 3102 SHAWNEE DRIVE, WINCHESTER VA 22601
Teresa M May director 2 COREY CREEK ROAD, TOLEDO OH 43623
Carol B Moerdyk director LIBBEY INC, PO BOX 10060, TOLEDO OH 43699-0060
James G Davis director C/O JAMES G DAVIS CONSTRUCTION CORP, 13530 PARKLAWN DRIVE, ROCKVILLE MD 20852
William F Brandt director, 10 percent owner, officer: Chairman C/O AMERICAN WOODMARK CORPORATION, 3102 SHAWNEE DRIVE, WINCHESTER VA 22601