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Fiserv Financial Strength

: 4 (As of Jun. 2022)
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Fiserv has the Financial Strength Rank of 4.

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.

Fiserv's Interest Coverage for the quarter that ended in Jun. 2022 was 4.83. Fiserv's debt to revenue ratio for the quarter that ended in Jun. 2022 was 1.21. As of today, Fiserv's Altman Z-Score is 1.58.


Competitive Comparison

For the Information Technology Services subindustry, Fiserv'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.

   

Fiserv Financial Strength Distribution

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

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



Fiserv 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:

Fiserv's Interest Expense for the months ended in Jun. 2022 was $-178 Mil. Its Operating Income for the months ended in Jun. 2022 was $860 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $20,915 Mil.

Fiserv'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*860/-178
=4.83

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

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

Fiserv'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
=(600 + 20915) / 17800
=1.21

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.

Fiserv has a Z-score of 1.58, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.58 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.


Fiserv  (NAS:FISV) 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.

Fiserv has the Financial Strength Rank of 4.


Fiserv Financial Strength Related Terms

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


Fiserv Business Description

Fiserv logo
Address
255 Fiserv Drive, Brookfield, WI, USA, 53045
Fiserv is a leading provider of core processing and complementary services, such as electronic funds transfer, payment processing, and loan processing, for U.S. banks and credit unions, with a focus on small and midsize banks. Through the merger with First Data in 2019, Fiserv now provides payment processing services for merchants. About 10% of the company's revenue is generated internationally.
Executives
Valueact Capital Management, Llc director, other: See Remarks ONE LETTERMAN DRIVE BUILDING D, 4TH FLOOR SAN FRANCISCO CA 94129
Va Partners I, Llc director, other: See Remarks ONE LETTERMAN DRIVE BUILDING D, 4TH FLOOR SAN FRANCISCO CA 94129
Valueact Holdings Gp, Llc director, other: See Remarks ONE LETTERMAN DRIVE BUILDING D, 4TH FLOOR SAN FRANCISCO CA 94129
Valueact Holdings, L.p. director, other: See Remarks ONE LETTERMAN DRIVE BUILDING D, 4TH FLOOR SAN FRANCISCO CA 94129
Valueact Capital Master Fund, L.p. director, other: See Remarks ONE LETTERMAN DRIVE BUILDING D, 4TH FLOOR SAN FRANCISCO CA 94129
Valueact Capital Management, L.p. director, other: See Remarks ONE LETTERMAN DRIVE BUILDING D, 4TH FLOOR SAN FRANCISCO CA 94129
Valueact Holdings Ii, L.p. director, other: See Remarks ONE LETTERMAN DRIVE BUILDING D, FOURTH FLOOR SAN FRANCISCO CA 94129
Haggart Dylan G. director ONE LETTERMAN DRIVE, BUILDING D FOURTH FLOOR SAN FRANCISCO CA 94129
Kereere Suzan officer: EVP, Head of GBS 255 FISERV DRIVE BROOKFIELD WI 53045
Rosman Adam L. officer: Chief Admin. and Legal Officer 200 LIBERTY STREET NEW YORK NY 10281
Mamilli Wafaa director C/O ZOETIS INC. 10 SYLVAN WAY PARSIPPANY NJ 07054
Warren Kevin M director 55 GLENLAKE PARKWAY, NE ATLANTA GA 30328
Kravis Henry R 10 percent owner C/O KOHLBERG KRAVIS ROBERTS & CO. L.P. 30 HUDSON YARDS NEW YORK NY 10001
Kkr Fund Holdings Gp Ltd 10 percent owner 9 WEST 57TH STREET 41ST FLOOR NEW YORK NY 10019
De Castro Henrique director C/O YAHOO, INC. 701 FIRST AVENUE SUNNYVALE CA 94089

Fiserv Headlines

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