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Morningstar Financial Strength

: 6 (As of Jun. 2022)
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Morningstar 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.

Morningstar's Interest Coverage for the quarter that ended in Jun. 2022 was 11.98. Morningstar's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.71. As of today, Morningstar's Altman Z-Score is 4.26.


Competitive Comparison

For the Financial Data & Stock Exchanges subindustry, Morningstar'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.

   

Morningstar Financial Strength Distribution

For the Capital Markets industry and Financial Services sector, Morningstar's Financial Strength distribution charts can be found below:

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



Morningstar 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:

Morningstar's Interest Expense for the months ended in Jun. 2022 was $-5 Mil. Its Operating Income for the months ended in Jun. 2022 was $54 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $1,266 Mil.

Morningstar'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*53.9/-4.5
=11.98

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

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

Morningstar'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
=(66.1 + 1266.3) / 1881.6
=0.71

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.

Morningstar has a Z-score of 4.26, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.26 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.


Morningstar  (NAS:MORN) 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.

Morningstar has the Financial Strength Rank of 6.


Morningstar Financial Strength Related Terms

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


Morningstar Business Description

Morningstar logo
Traded in Other Exchanges
Address
22 West Washington Street, Chicago, IL, USA, 60602
Morningstar Inc is a provider of independent investment research to financial advisers, asset managers, and investors. The company focuses its operations on two core sectors: data and research. It offers data on investments such as mutual funds, stocks, exchange-traded funds, closed-end funds, separate accounts, and variable annuities. Further, the company tracks real-time market data of equity, derivative, and currency exchanges and other investments. In its research operation, Morningstar offers analyst research on passive and active mutual funds, alternative funds, and college saving plans. Morningstar's largest share of revenue is generated in the United States of America.
Executives
Francis Cheryl A director 8237 GREYSTONE COURT BURR RIDGE IL 60527
Sutton Doniel director C/O MORNINGSTAR, INC. 22 WEST WASHINGTON STREET CHICAGO IL 60602
Diamonte Robin director C/O MORNINGSTAR, INC. 22 WEST WASHINGTON ST. CHICAGO IL 60602
Landis Gail S director MORNINGSTAR, INC. 22 WEST WASHINGTON STREET CHICAGO IL 60602
Kaplan Steven N director 1101 EAST 58TH STREET CHICAGO IL 60637
Joynt Stephen director C/O MORNINGSTAR, INC. 22 W. WASHINGTON STREET CHICAGO IL 60602
Lyons William M director 225 WEST WACKER DRIVE CHICAGO IL 60606
Mcgarry Kimberly J officer: Global Controller & CAO 22 WEST WASHINGTON STREET 6TH FLOOR CHICAGO IL 60602
Tsay Caroline J director C/O ROSETTA STONE INC. 1919 NORTH LYNN STREET, 7TH FLOOR ARLINGTON VA 22209
Desmond Bevin officer: Head of Talent and Culture C/O MORNINGSTAR, INC. 225 WEST WACKER DRIVE CHICAGO IL 60606
Kapoor Kunal director, officer: CEO MORNINGSTAR, INC. 22 WEST WASHINGTON STREET CHICAGO IL 60602
Dunn Daniel Joseph officer: Chief Revenue Officer C/O MORNINGSTAR, INC. 22 WEST WASHINGTON STREET CHICAGO IL 60602
Dubinsky Jason officer: Chief Financial Officer C/O MORNINGSTAR, INC. 22 W. WASHINGTON STREET CHICAGO IL 60602
Mansueto Joseph D director, 10 percent owner, officer: Executive Chairman C/O MORNINGSTAR, INC. 225 WEST WACKER DRIVE CHICAGO IL 60606
Rothschild Tricia officer: Chief Product Officer C/O MORNINGSTAR, INC. 22 WEST WASHINGTON STREET CHICAGO IL 60602

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