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Alliant Energy (Alliant Energy) Financial Strength

: 4 (As of Dec. 2023)
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Alliant Energy 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.

Alliant Energy's Interest Coverage for the quarter that ended in Dec. 2023 was 1.74. Alliant Energy's debt to revenue ratio for the quarter that ended in Dec. 2023 was 2.47. As of today, Alliant Energy's Altman Z-Score is 1.08.


Competitive Comparison

For the Utilities - Regulated Electric subindustry, Alliant Energy'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.


Alliant Energy Financial Strength Distribution

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

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



Alliant Energy 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:

Alliant Energy's Interest Expense for the months ended in Dec. 2023 was $-105 Mil. Its Operating Income for the months ended in Dec. 2023 was $183 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $8,225 Mil.

Alliant Energy's Interest Coverage for the quarter that ended in Dec. 2023 is

Interest Coverage=-1*Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*183/-105
=1.74

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

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

Alliant Energy's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1284 + 8225) / 3844
=2.47

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.

Alliant Energy has a Z-score of 1.08, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.08 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.


Alliant Energy  (NAS:LNT) 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.

Alliant Energy has the Financial Strength Rank of 4.


Alliant Energy Financial Strength Related Terms

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


Alliant Energy (Alliant Energy) Business Description

Traded in Other Exchanges
Address
4902 N. Biltmore Lane, Madison, WI, USA, 53718
Alliant Energy is the parent of two regulated utilities, Interstate Power and Light and Wisconsin Power and Light, serving nearly 985,000 electric customers and 425,000 natural gas-only customers. Both subsidiaries engage in the generation and distribution of electricity and the distribution and transportation of natural gas. Alliant also owns a 16% interest in American Transmission Co.
Executives
Ignacio A Cortina director 1917 FOUR WHEEL DRIVE, OSHKOSH WI 54902
Raja Sundararajan officer: Executive Vice President 1 RIVERSIDE PLAZA, COLUMBUS OH 43215
Lisa M Barton officer: President and COO AMERICAN ELECTRIC POWER COMPANY, INC., 1 RIVERSIDE PLAZA, COLUMBUS OH 43215
Stephanie Cox director C/O SCHLUMBERGER LIMITED, 5599 SAN FELIPE 17TH FLOOR, HOUSTON TX 77056
Nancy Joy Falotico director ONE AMERICAN ROAD, DEARBORN MI 48126
Michael Luhrs officer: Senior Vice President P.O. BOX 14720, MADISON WI 53708-0720
Michael Dennis Garcia director C/O DOMTAR CORPORATION, 234 KINGSLEY PARK DRIVE, FORT MILL SC 29715
De Leon David A officer: Senior Vice President P.O. BOX 14720, MADISON WI 53708-0720
James H Gallegos officer: Sr. V.P.-Gen. Cnsl.-Corp. Sec. 1 WATER STREET, CAMDEN NJ 08102-1658
Patricia L Kampling officer: VICE PRESIDENT PO BOX 2568, MADISON WI 53701
Jillian C. Evanko director 1 INFINITY CORPORATE CENTRE DRIVE, GARFIELD HEIGHTS OH 44125
Terry L Kouba officer: Senior Vice President P.O. BOX 14720, MADISON WI 53708-0720
Deborah B. Dunie director 1710 SAIC DRIVE, MCLEAN VA 22102
Roger K Newport director 703 CURTIS STREET, MIDDLETOWN OH 45043
Wayne A Reschke officer: Senior Vice President P O BOX 14720, MADISON WI 53708

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