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AmerisourceBergen Financial Strength

: 6 (As of Jun. 2022)
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AmerisourceBergen 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.

AmerisourceBergen's Interest Coverage for the quarter that ended in Jun. 2022 was 10.95. AmerisourceBergen's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.03. As of today, AmerisourceBergen's Altman Z-Score is 4.59.


Competitive Comparison

For the Medical Distribution subindustry, AmerisourceBergen'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.

   

AmerisourceBergen Financial Strength Distribution

For the Medical Distribution industry and Healthcare sector, AmerisourceBergen's Financial Strength distribution charts can be found below:

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



AmerisourceBergen 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:

AmerisourceBergen's Interest Expense for the months ended in Jun. 2022 was $-58 Mil. Its Operating Income for the months ended in Jun. 2022 was $631 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $4,640 Mil.

AmerisourceBergen'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*631.103/-57.657
=10.95

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

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

AmerisourceBergen'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
=(1421.566 + 4640.131) / 240258.404
=0.03

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.

AmerisourceBergen has a Z-score of 4.59, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.59 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.


AmerisourceBergen  (NYSE:ABC) 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.

AmerisourceBergen has the Financial Strength Rank of 6.


AmerisourceBergen Financial Strength Related Terms

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


AmerisourceBergen Business Description

AmerisourceBergen logo
Address
1 West First Avenue, Conshohocken, PA, USA, 19428-1800
AmerisourceBergen is a leading pharmaceutical wholesaler engaged in the sourcing and distribution of branded, generic, and specialty pharmaceutical products to pharmacies (retail chains, independent, and mail-order), hospital networks, and healthcare providers. Along with McKesson and Cardinal Health, the three compose well over 90% of the U.S. pharmaceutical wholesale industry. Through bolt-on acquisitions, the company has expanded into international wholesale in Europe (Alliance Healthcare). AmerisourceBergen provides commercialization services for manufacturers of pharmaceuticals and medical devices, global specialty drug logistics (World Courier), and animal health product distribution (MWI Animal Health).
Executives
Walgreens Boots Alliance Holdings Llc 10 percent owner 108 WILMOT ROAD DEERFIELD IL 60015
Greenberg Lon R director 460 NORTH GULPH ROAD KING OF PRUSSIA PA 19406
Campbell Elizabeth S officer: Executive Vice President 1 WEST FIRST AVENUE CONSHOHOCKEN PA 19428
Nally Dennis M director C/O MORGAN STANLEY, 1585 BROADWAY NEW YORK NY 10036
Donato Leslie E officer: EVP & Chief Strategy Officer 227 WASHINGTON STREET CONSHOHOCKEN PA 19428
Battaglia Silvana officer: Executive Vice President 227 WASHINGTON STREET CONSHOHOCKEN PA 19428
Park Sun officer: Executive Vice President 1300 MORRIS DRIVE CHESTERBROOK PA 19087
Gaddes Kathy H. officer: Executive Vice President 1300 MORRIS DRIVE CHESTERBROOK PA 19087
Walgreen Co 10 percent owner 108 WILMOT RD DEERFIELD IL 60015
Walgreens Boots Alliance, Inc. 10 percent owner 108 WILMOT ROAD DEERFIELD IL 60015
Durcan Dermot Mark director
Cleary James F Jr officer: Executive Vice President 2029 WALNUT STREET #3820 PHILADELPHIA PA 19103
Mauch Robert P. officer: Executive Vice President 1300 MORRIS DRIVE CHESTERBROOK PA 19087
Barra Ornella director 24 BOULEVARD DU TENAO MONTE CARLO O9 98000
Krikorian Lazarus officer: Senior Vice President 1300 MORRIS DRIVE CHESTERBROOK PA 19087

AmerisourceBergen Headlines

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