GURUFOCUS.COM » STOCK LIST » USA » NAS » Mercury Systems Inc (NAS:MRCY) » Definitions » Financial Strength
Switch to:

Mercury Systems Financial Strength

: 6 (As of Jun. 2022)
View and export this data going back to 1998. Start your Free Trial

Mercury Systems 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.

Mercury Systems's Interest Coverage for the quarter that ended in Jun. 2022 was 14.89. Mercury Systems's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.45. As of today, Mercury Systems's Altman Z-Score is 3.34.


Competitive Comparison

For the Aerospace & Defense subindustry, Mercury Systems'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.

   

Mercury Systems Financial Strength Distribution

For the Aerospace & Defense industry and Industrials sector, Mercury Systems's Financial Strength distribution charts can be found below:

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



Mercury Systems 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:

Mercury Systems's Interest Expense for the months ended in Jun. 2022 was $-2.5 Mil. Its Operating Income for the months ended in Jun. 2022 was $36.5 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $521.4 Mil.

Mercury Systems'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*36.535/-2.453
=14.89

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

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

Mercury Systems'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
=(0 + 521.388) / 1158.916
=0.45

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.

Mercury Systems has a Z-score of 3.34, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.34 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.


Mercury Systems  (NAS:MRCY) 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.

Mercury Systems has the Financial Strength Rank of 6.


Mercury Systems Financial Strength Related Terms

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


Mercury Systems Business Description

Mercury Systems logo
Traded in Other Exchanges
Address
50 Minuteman Road, Andover, MA, USA, 01810
Mercury Systems Inc is a commercial technology company serving the aerospace and defense industry. The company envisions, creates and delivers secure open architecture solutions powering a broad range of mission-critical applications in the most challenging and demanding environments. Inspired by its purpose of delivering Innovation that Matters, By and For People Who Matter, Mercury helps make the world a safer, more secure place for all.
Executives
Wells Charles Roger Iv officer: EVP President Microelectronics 5255 GROVEMONT DRIVE ELKRIDGE MD 21075
Plunkett Debora A director 6501 LEGACY DRIVE PLANO TX 75024
Stevison James Mitch officer: EVP, Chief Growth Officer 103 SANSBERRY LANE MADISON AL 35376
Huber Thomas officer: EVP Chief Transformation Offic 218 BIRD ROAD CORAL GABLES FL 33146
Perry Brian E officer: EVP, President Processing 847 AMES HILL DRIVE TEWKSBURY MA 01876
Carvalho Orlando D director 6801 ROCKLEDGE DRIVE BETHESDA MD 20817
Nearhos Barry R director C/O VIRTUSA CORPORATION 200 WEST PARK DRIVE WESTBOROUGH MA 01581
Mccarthy Michelle M officer: VP, CAO & Controller 50 MINUTEMAN ROAD ANDOVER MA 01810
Ruppert Michael officer: EVP, CFO & Treasurer 50 MINUTEMAN ROAD ANDOVER MA 01810
Krakauer Mary L director 176 SOUTH STREET HOPKINTON MA 01748
Disbrow Lisa S director 50 MINUTEMAN ROAD ANDOVER MA 01810
Cambria Christopher C officer: SVP, Gen Counsel & Secretary C/O GENCORP INC. P.O. BOX 537012 SACRAMENTO CA 95853-7012
Newman Mark S director DRS TECHNOLOGIES, INC. 5 SYLVAN WAY PARSIPPANY NJ 07054
Bisson Kevin M officer: SVP, CFO and Treasurer 25 BALDPATE ROAD BOXFORD MA 01921
Daniels Michael A director ONE SYBASE DRIVE DUBLIN CA 94513

Mercury Systems Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)