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PetIQ Financial Strength

: 4 (As of Mar. 2022)
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PetIQ 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.

PetIQ's Interest Coverage for the quarter that ended in Mar. 2022 was 1.54. PetIQ's debt to revenue ratio for the quarter that ended in Mar. 2022 was 0.46. As of today, PetIQ's Altman Z-Score is 1.59.


Competitive Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, PetIQ'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.

   

PetIQ Financial Strength Distribution

For the Drug Manufacturers industry and Healthcare sector, PetIQ's Financial Strength distribution charts can be found below:

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



PetIQ 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:

PetIQ's Interest Expense for the months ended in Mar. 2022 was $-6.1 Mil. Its Operating Income for the months ended in Mar. 2022 was $9.4 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2022 was $489.4 Mil.

PetIQ's Interest Coverage for the quarter that ended in Mar. 2022 is

Interest Coverage=-1*Operating Income (Q: Mar. 2022 )/Interest Expense (Q: Mar. 2022 )
=-1*9.399/-6.121
=1.54

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

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

PetIQ's Debt to Revenue Ratio for the quarter that ended in Mar. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(14.458 + 489.409) / 1102.78
=0.46

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.

PetIQ has a Z-score of 1.59, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.59 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.


PetIQ  (NAS:PETQ) 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.

PetIQ has the Financial Strength Rank of 4.


PetIQ Financial Strength Related Terms

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


PetIQ Business Description

PetIQ logo
Traded in Other Exchanges
Address
230 East Riverside Dr, Eagle, ID, USA, 83616
PetIQ Inc is a manufacturer and distributor of health and wellness products for dogs and cats. The company offers veterinarian-grade pet Rx medications, OTC flea and tick preventatives, vitamins treats, nutritional supplements, and hygiene products. The group operates in two segments namely the Products and Services segments. It also provides third-party products to retailers which for a long time were primarily available from veterinary clinics only. Its proprietary brands include PetIQ, PetArmor, VIP Petcare, VetIQ PetCare, VetIQ, Capstar, Advecta, SENTRY, Sergeants, TruProfen, Betsy Farms, PetAction, Minties, Vera and Delightibles. The company generates maximum revenue from Products segment.
Executives
Hall Allan director C/O PETIQ, INC. 230 E. RIVERSIDE DR. EAGLE ID 83616
Glasman Zvi officer: Chief Financial Officer C/O FOX FACTORY HOLDING CORP. 915 DISC DRIVE SCOTTS VALLEY CA 95066
Walker Kenneth C. director C/O PETIQ, INC. 230 E. RIVERSIDE DR. EAGLE ID 83616
Smith Michael A officer: EVP - Products 923 S. BRIDGEWAY PLACE C/O PETIQ, INC. EAGLE ID 83616
Lefko Kimberly director, Non-Employee Director 923 S. BRIDGEWAY PLACE EAGLE ID 83616
Oloughlin Sheryl director 923 S. BRIDGEWAY PLACE EAGLE ID 83616
Huff Scott director 923. S. BRIDGEWAY PLACE EAGLE ID 83616
Herrman Robert Michael officer: General Counsel and Secretary 923 SOUTH BRIDGEWAY PLACE EAGLE ID 83616
Santana Will director, officer: Executive Vice President 500 E SHORE DR SUITE 120 EAGLE ID 83616
Bird Larry R director C/O PETIQ, INC., 500 E. SHORE DRIVE SUITE 120 EAGLE ID 83616
Sholtis Susan director C/O PETIQ, INC., 500 E. SHORE DRIVE SUITE 120 EAGLE ID 83616
Ecp Helios Partners Iv, L.p. 10 percent owner 437 MADISON AVENUE, 14TH FLOOR NEW YORK NY 10022
Michael Gary G director P. O. BOX 1718 BOISE ID 83701
Newland John officer: Chief Financial Officer C/O TRUE SCIENCE LLC 500 E. SHORE DRIVE SUITE 120 EAGLE ID 83616
Christensen Mccord director, officer: Chief Executive Officer 500 EAST SHORE DRIVE SUITE 120 EAGLE ID 83616

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