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Healthcare Services Group Financial Strength

: 9 (As of Mar. 2022)
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Healthcare Services Group has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Healthcare Services Group Inc shows strong financial strength.

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.

Healthcare Services Group's Interest Coverage for the quarter that ended in Mar. 2022 was 27.56. Healthcare Services Group's debt to revenue ratio for the quarter that ended in Mar. 2022 was 0.01. As of today, Healthcare Services Group's Altman Z-Score is 5.94.


Competitive Comparison

For the Medical Care Facilities subindustry, Healthcare Services Group'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.

   

Healthcare Services Group Financial Strength Distribution

For the Healthcare Providers & Services industry and Healthcare sector, Healthcare Services Group's Financial Strength distribution charts can be found below:

* The bar in red indicates where Healthcare Services Group's Financial Strength falls into.



Healthcare Services Group 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:

Healthcare Services Group's Interest Expense for the months ended in Mar. 2022 was $-1 Mil. Its Operating Income for the months ended in Mar. 2022 was $14 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2022 was $11 Mil.

Healthcare Services Group's Interest Coverage for the quarter that ended in Mar. 2022 is

Interest Coverage=-1*Operating Income (Q: Mar. 2022 )/Interest Expense (Q: Mar. 2022 )
=-1*14.028/-0.509
=27.56

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

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

Healthcare Services Group's Debt to Revenue Ratio for the quarter that ended in Mar. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(10 + 10.588) / 1707.244
=0.01

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.

Healthcare Services Group has a Z-score of 5.94, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 5.94 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.


Healthcare Services Group  (NAS:HCSG) 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.

Healthcare Services Group has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.


Healthcare Services Group Financial Strength Related Terms

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


Healthcare Services Group Business Description

Healthcare Services Group logo
Industry
Traded in Other Exchanges
Address
3220 Tillman Drive, Suite 300, Bensalem, PA, USA, 19020
Healthcare Services Group Inc is a provider of housekeeping and facility-management services to the healthcare industry. The company operates two business segments, both contributing roughly equally to the company's revenue: Housekeeping, laundry, linen, and other services; and Dietary department services. Housekeeping includes management of clients' housekeeping departments, cleaning, disinfecting and sanitizing, laundry, and bed linen and uniform services. Dietary consists of food purchasing, meal preparation, and providing dietitian consulting services. Its clients are primarily nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States of America.
Executives
Grant Laura K director 3220 TILLMAN DRIVE BENSALEM PA 19020
Wahl Theodore director, officer: President & CEO 3220 TILLMAN DRIVE SUITE 300 BENSALEM PA 19020
Frome Robert L director 3220 TILLMAN DRIVE SUITE 300 BENSALEM PA 19020
Moss Robert J director 3220 TILLMAN DRIVE SUITE 300 BENSALEM PA 19020
Briggs John director 3220 TILLMAN DRIVE SUITE 300 BENSALEM PA 19020
Ottaviano Dino D director 3220 TILLMAN DRIVE SUITE 300 BENSALEM PA 19020
Casey Diane S director 3220 TILLMAN DRIVE SUITE 300 BENSALEM PA 19020
Mcfadden John J Jr director 19 PURDUE DRIVE RICHBORO PA 18954
Visconto Jude director 3220 TILLMAN DRIVE SUITE 300 BENSALEM PA 19020
Castagnino Daniela director 3220 TILLMAN DRIVE, SUITE 300 BENSALEM PA 19020
Bundick Jason J officer: General Counsel & Secretary 3220 TILLMAN DRIVE SUITE 300 BENSALEM PA 19020
Kush Andrew officer: Executive Vice President 3220 TILLMAN DRIVE SUITE 300 BENSALEM PA 19020
Mcbryan Michael E officer: Executive Vice President 3220 TILLMAN DRIVE SUITE 300 BENSALEM PA 19020
Shea John Christopher officer: Chief Financial Officer 3220 TILLMAN DRIVE SUITE 300 BENSALEM PA 19020
Hurlock David officer: Executive Vice President & COO 3220 TILLMAN DRIVE SUITE 300 BENSALEM PA 19020

Healthcare Services Group Headlines

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