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Masimo Financial Strength

: 6 (As of Jun. 2022)
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Masimo 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.

Masimo's Interest Coverage for the quarter that ended in Jun. 2022 was 4.91. Masimo's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.44. As of today, Masimo's Altman Z-Score is 4.76.


Competitive Comparison

For the Medical Instruments & Supplies subindustry, Masimo'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.

   

Masimo Financial Strength Distribution

For the Medical Devices & Instruments industry and Healthcare sector, Masimo's Financial Strength distribution charts can be found below:

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



Masimo 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:

Masimo's Interest Expense for the months ended in Jun. 2022 was $-5 Mil. Its Operating Income for the months ended in Jun. 2022 was $22 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $972 Mil.

Masimo'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*22.1/-4.5
=4.91

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

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

Masimo'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
=(30.3 + 972.3) / 2261.2
=0.44

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.

Masimo has a Z-score of 4.76, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.76 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.


Masimo  (NAS:MASI) 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.

Masimo has the Financial Strength Rank of 6.


Masimo Financial Strength Related Terms

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


Masimo Business Description

Masimo logo
Traded in Other Exchanges
Address
52 Discovery, Irvine, CA, USA, 92618
Masimo is an Irvine, California-based medical device business that focuses on noninvasive patient monitoring. It began by developing superior signal processing algorithms to measure blood oxygenation levels through pulse oximetry and has expanded this expertise into a wide range of measurements and applications. The company generates revenue globally, with the United States the largest market (67% of 2020 sales), followed by Europe, the Middle East, and Africa (21%), Asia and Australia (9%), and North and South America excluding the U.S. (3%).
Executives
Duffy Kevin P officer: President, Consumer 1 VIPER WAY VISTA CA 92081
Koning John Todd officer: SVP, Chief Accounting Officer C/O MASIMO CORPORATION 52 DISCOVERY IRVINE CA 92618
Shimer Julie Ann director 18453 LAS CUMBRES ROAD LOS GATOS CA 95033
Cohen H Michael director C/O MASIMO CORPORATION 52 DISCOVERY IRVINE CA 92618
Muhsin Bilal officer: EVP, ENG, MKTG & REG C/O MASIMO CORPORATION 52 DISCOVERY IRVINE CA 92618
Levy Tao officer: EVP BUS DEV C/O MASIMO CORPORATION 52 DISCOVERY IRVINE CA 92618
Young Micah W officer: EVP & Chief Financial Officer C/O MASIMO CORPORATION 52 DISCOVERY IRVINE CA 92618
Leclercq Thierry officer: EVP, Bus Dev C/O MASIMO CORPORATION 52 DISCOVERY IRVINE CA 92618
Mikkelson Adam director C/O MASIMO CORPORATION 52 DISCOVERY IRVINE CA 92618
Harkin Thomas director C/O MASIMO CORPORATION 52 DISCOVERY IRVINE CA 92618
Van Ramshorst David J officer: Chief Accounting Officer C/O MASIMO CORPORATION 40 PARKER IRVINE CA 92618
Reynolds Craig B director 1046 MIDDLEBROOK WAY KENESAW GA 30144
De Raad Mark officer: EVP & Chief Financial Officer 40 PARKER IRVINE CA 92618
Jansen Paul officer: EVP, Mkt & Clinical Dev C/O MASIMO CORPORATION 40 PARKER IRVINE CA 92630
Lasersohn Jack W director 18 BANK STREET SUMMIT NJ 07901

Masimo Headlines

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