GURUFOCUS.COM » STOCK LIST » USA » NAS » Exelon Corp (NAS:EXC) » Definitions » Financial Strength
Switch to:

Exelon Financial Strength

: 3 (As of Jun. 2022)
View and export this data going back to 1993. Start your Free Trial

Exelon 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:

Exelon Corp 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.

Exelon's Interest Coverage for the quarter that ended in Jun. 2022 was 1.94. Exelon's debt to revenue ratio for the quarter that ended in Jun. 2022 was 2.28. As of today, Exelon's Altman Z-Score is 0.93.


Competitive Comparison

For the Utilities - Regulated Electric subindustry, Exelon'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.

   

Exelon Financial Strength Distribution

For the Utilities - Regulated industry and Utilities sector, Exelon's Financial Strength distribution charts can be found below:

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



Exelon 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:

Exelon's Interest Expense for the months ended in Jun. 2022 was $-358 Mil. Its Operating Income for the months ended in Jun. 2022 was $696 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $36,179 Mil.

Exelon's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*696/-358
=1.94

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

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Exelon Corp interest coverage is 2.66, which is low.

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

Exelon's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(2508 + 36179) / 16956
=2.28

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.

Exelon has a Z-score of 0.93, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.93 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.


Exelon  (NAS:EXC) 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.

Exelon 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.


Exelon Financial Strength Related Terms

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


Exelon Business Description

Exelon logo
Address
10 South Dearborn Street, 48th Floor, P.O. Box 805379, Chicago, IL, USA, 60680-5379
Exelon serves approximately 10 million power and gas customers at its six regulated utilities in Illinois, Pennsylvania, Maryland, New Jersey, Delaware, and Washington, D.C.
Executives
Trpik Joseph R Jr officer: SVP & Corp. Controller 10 S DEARBORN STREET 54TH FLOOR CHICAGO IL 60603
Littleton Gayle officer: EVP & General Counsel 10 S. DEARBORN ST. 52ND FLOOR SE CHICAGO IL 60603
Mchugh James officer: EVP & Chief Commercial Officer 10 S DEARBORN STREET 54TH FLOOR CHICAGO IL 60603
Anthony John Tyler officer: CEO Pepco Holdings LLC 10 S DEARBORN STREET 54TH FLOOR CHICAGO IL 60603
Quiniones Gil C officer: CEO of ComEd 10 S DEARBORN STREET 54TH FLOOR CHICAGO IL 60603
Gutierrez Carlos M director 5 GREENWAY PLAZA, STE 110 HOUSTON TX 77046
Bowers William P director 600 NORTH 18TH STREET BIN 15N-8170 BIRMINGHAM AL 35203
De Balmann Yves C director 360 MADISON AVE 20TH FL C/O BREGAL INVESTMENTS NEW YORK NY 10017
Joskow Paul L director
Cheshire Marjorie Rodgers director 1040 PARK AVENUE SUITE 300 BALTIMORE MD 21201
Hanson Bryan Craig officer: Executive Vice President 10 S. DEARBORN STREET 54TH FLOOR CHICAGO IL 60603
Khouzami Carim V officer: CEO of BGE 10 S DEARBORN STREET 54TH FLOOR CHICAGO IL 60603
Velazquez David M officer: Pres. & CEO, Pepco Holdings CONECTIV ENERGY 500 N WAKEFIELD DRIVE NEWARK DE 19702
Glockner David officer: Executive Vice President 10 S. DEARBORN STREET 54TH FLOOR CHICAGO IL 60603
Crane Christopher M. director, officer: President and CEO 10 SOUTH DEARBORN STREET 54TH FLOOR CHICAGO IL 60603

Exelon Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)