GURUFOCUS.COM » STOCK LIST » USA » NAS » National Instruments Corp (NAS:NATI) » Definitions » Financial Strength
Switch to:

National Instruments Financial Strength

: 6 (As of Jun. 2022)
View and export this data going back to 1995. Start your Free Trial

National Instruments 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.

National Instruments's Interest Coverage for the quarter that ended in Jun. 2022 was 8.31. National Instruments's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.33. As of today, National Instruments's Altman Z-Score is 4.58.


Competitive Comparison

For the Software - Application subindustry, National Instruments'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.

   

National Instruments Financial Strength Distribution

For the Software industry and Technology sector, National Instruments's Financial Strength distribution charts can be found below:

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



National Instruments 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:

National Instruments's Interest Expense for the months ended in Jun. 2022 was $-3 Mil. Its Operating Income for the months ended in Jun. 2022 was $21 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $510 Mil.

National Instruments'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*20.772/-2.5
=8.31

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

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

National Instruments'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
=(14.813 + 509.52) / 1582.06
=0.33

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.

National Instruments has a Z-score of 4.58, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.58 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.


National Instruments  (NAS:NATI) 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.

National Instruments has the Financial Strength Rank of 6.


National Instruments Financial Strength Related Terms

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


National Instruments Business Description

National Instruments logo
Traded in Other Exchanges
Address
11500 North MoPac Expressway, Austin, TX, USA, 78759
National Instruments provides testing and measurement equipment and integrated, software-led solutions to serve high-complexity automated testing in late product development. NI serves a long tail of more than 30,000 customers in myriad end markets but focuses on the semiconductor, transportation, and aerospace and defense verticals.
Executives
Green Jason Elliot officer: Chief Revenue Officer & EVP C/O NATIONAL INSTRUMENTS CORPORATION 11500 NORTH MOPAC AUSTIN TX 78759
Rapp Karen Marie officer: Chief Financial Officer & EVP C/O NATIONAL INSTRUMENTS CORPORATION 11500 NORTH MOPAC AUSTIN TX 78759
Starkloff Eric Howard director, officer: President & CEO 11500 NORTH MOPAC BUILDING C AUSTIN TX 78759
Favre Ritu officer: Executive Vice President 12367 CROSTHWAITE CIRCLE POWAY CA 92064
Fettweis Gerhard Paul director C/O NATIONAL INSTRUMENTS CORPORATION 11500 NORTH MOPAC AUSTIN TX 78759
Rust Scott Arthur officer: Executive Vice President C/O NATIONAL INSTRUMENTS CORPORATION 11500 NORTH MOPAC AUSTIN TX 78759
Delly Gayla J director 3000 TECHNOLOGY DR ANGLETON TX 77515
Sublett Carla Pineyro officer: Chief Marketing Officer C/O NATIONAL INSTRUMENTS CORPORATION 11500 NORTH MOPAC AUSTIN TX 78759
Cashman James E Iii director 2600 ANSYS DRIVE CANONSBURG PA 15317
Griffin Liam director 5260 CALIFORNIA AVENUE IRVINE CA 92617
Roiko John Charles officer: Interim CFO C/O NATIONAL INSTRUMENTS CORPORATION 11500 NORTH MOPAC AUSTIN TX 78759
Mcgrath Michael E director 11701 LUNA ROAD DALLAS TX 75234
Berra John M director 11690 N.W. 105TH STREET MIAMI FL 33178
Hester Phillip D officer: Senior Vice President ONE AMD PLACE, M/S 68 SUNNYVALE CA 94088
Medica John K director C/O NATIONAL INSTRUMENTS CORPORATION 11500 NORTH MOPAC EXPWY, BLDG C AUSTIN TX 78759

National Instruments Headlines

Other Sources

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)