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II-VI Financial Strength

: 6 (As of Mar. 2022)
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II-VI 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.

II-VI's Interest Coverage for the quarter that ended in Mar. 2022 was 2.45. II-VI's debt to revenue ratio for the quarter that ended in Mar. 2022 was 0.74. As of today, II-VI's Altman Z-Score is 2.37.


Competitive Comparison

For the Scientific & Technical Instruments subindustry, II-VI'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.

   

II-VI Financial Strength Distribution

For the Hardware industry and Technology sector, II-VI's Financial Strength distribution charts can be found below:

* The bar in red indicates where II-VI's Financial Strength falls into.



II-VI 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:

II-VI's Interest Expense for the months ended in Mar. 2022 was $-43 Mil. Its Operating Income for the months ended in Mar. 2022 was $107 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2022 was $1,044 Mil.

II-VI'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*106.769/-43.499
=2.45

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

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

II-VI'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
=(1412.009 + 1043.975) / 3310.896
=0.74

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.

II-VI has a Z-score of 2.37, indicating it is in Grey Zones. This implies that II-VI is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.37 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* 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.


II-VI  (NAS:IIVI) 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.

II-VI has the Financial Strength Rank of 6.


II-VI Financial Strength Related Terms

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


II-VI Business Description

II-VI logo
Traded in Other Exchanges
Address
375 Saxonburg Boulevard, Saxonburg, PA, USA, 16056
II-VI Inc manufactures engineered materials, optoelectronic components and products used in industrial, optical communications, military, semiconductor, consumer, and life science applications. The firm operates in two segments Photonic Solutions Segment and Compound Semiconductors Segment. The Photonic Solutions Segment leverages II-VI's compound semiconductor technology platforms to deliver components and subsystems. The Compound Semiconductors Segment is a market leader in differentiated materials and devices.
Executives
Basso Ronald officer: Chief Legal & Compliance Off. C/O II-VI INCORPORATED 375 SAXONBURG BLVD SAXONBURG PA 16056
Neal-graves Lisa director C/O II-VI INCORPORATED 375 SAXONBURG BOULEVARD SAXONBURG PA 16056
Pagliuca Stephen G director BAIN CAPITAL PARTNERS LLC JOHN HANCOCK TOWER, 200 CLARENDON STREET BOSTON MA 02116
Motley David L director 517 AVONWORTH HEIGHTS DRIVE PITTSBURGH PA 151237
Dreyer Michael L director C/O F5 NETWORKS, INC. 401 ELLIOTT AVE. WEST SEATTLE WA 98119
Stephens Robert director 3102 MONTANA DEL SOL SAN CLEMENTE CA 92673
Rawls Jerry S director 1308 MOFFETT PARK DRIVE SUNNYVALE CA 94089-1133
Digirolomo Enrico director C/O II-VI INCORPORATED 375 SAXONBURG BLVD. SAXONBURG PA 16056
Hatter Patricia director 919 E. HILLSDALE BLVD. FOSTER CITY CA 94404
Koeppen Christopher officer: Chief Technology Officer C/O II-VI INCORPORATED 375 SAXONBURG BOULEVARD SAXONBURG PA 16056
Schwendinger Jo Anne officer: General Counsel and Secretary C/O II-VI INCORPORATED 375 SAXONBURG BLVD. SAXONBURG PA 16056
Ii-vi Inc officer: CTO 375 SAXONBURG BLVD SAXONBURG PA 16056
Sadasivam Shaker director P O BOX 8 SAINT PETERS MO 63376
Kapusta Gary Alan officer: Chief Operating Officer C/O II-VI INCORPORATED 375 SAXONBURG BOULEVARD SAXONBURG PA 16056
Bashaw Walter Robert Ii officer: General Counsel C/O II-VI INCORPORATED 375 SAXONBURG BLVD SAXONBURG PA 16056

II-VI Headlines

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