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Arcosa (Arcosa) Financial Strength : 7 (As of Dec. 2023)


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What is Arcosa Financial Strength?

Arcosa has the Financial Strength Rank of 7.

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.

Arcosa's Interest Coverage for the quarter that ended in Dec. 2023 was 5.61. Arcosa's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.24. As of today, Arcosa's Altman Z-Score is 3.07.


Competitive Comparison of Arcosa's Financial Strength

For the Engineering & Construction subindustry, Arcosa'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.


Arcosa's Financial Strength Distribution in the Construction Industry

For the Construction industry and Industrials sector, Arcosa's Financial Strength distribution charts can be found below:

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



Arcosa 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:

Arcosa's Interest Expense for the months ended in Dec. 2023 was $-7 Mil. Its Operating Income for the months ended in Dec. 2023 was $40 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $562 Mil.

Arcosa's Interest Coverage for the quarter that ended in Dec. 2023 is

Interest Coverage=-1*Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*40.4/-7.2
=5.61

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

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

Arcosa's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(6.8 + 561.9) / 2328.8
=0.24

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.

Arcosa has a Z-score of 3.07, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.07 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.


Arcosa  (NYSE:ACA) 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.

Arcosa has the Financial Strength Rank of 7.


Arcosa Financial Strength Related Terms

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


Arcosa (Arcosa) Business Description

Traded in Other Exchanges
Address
500 N. Akard Street, Suite 400, Dallas, TX, USA, 75201
Arcosa Inc is a manufacturer and producer of infrastructure-related products and services. It operates in three segments namely Construction Products, Engineered Structures, and Transportation Products. The Construction Products segment produces and sells construction aggregates and manufactures and sells trench shields and shoring products and services for infrastructure-related projects. The Transportation Products segment manufactures and sells products for the inland waterway and rail transportation industries. The Engineered Structures segment manufactures and sells products for energy-related businesses, including structural wind towers, telecommunication structures, steel utility structures for electricity transmission and distribution, and storage and distribution containers.
Executives
Antonio Carrillo director, officer: President & CEO 500 N AKARD ST. SUITE 400, DALLAS TX 75201
Kerry S Cole officer: Pres of Energy Equip. 500 N AKARD ST. SUITE 400, DALLAS TX 75201
Collins Jesse E. Jr. officer: Pres Transp Products 6270 FIRTH ROAD, FORT WORTH TX 76116
Ronald J Gafford director ARCOSA INC, 500 N AKARD ST. SUITE 400, DALLAS TX 75201
Eric D Hurst officer: VP Controller (PAO) 500 N. AKARD ST., SUITE 400, DALLAS TX 75201
Steven J. Demetriou director 25825 SCIENCE PARK DRIVE, SUITE 400, BEACHWOOD OH 44102
Mary E Henderson officer: Vice President 500 N AKARD ST. SUITE 400, DALLAS TX 75201
Gail M Peck officer: Vice President 500 N AKARD ST. SUITE 400, DALLAS TX 75201
Bryan Stevenson officer: Secretary 500 N AKARD ST., DALLAS TX 75201
Julie A Piggott director 500 N AKARD ST. SUITE 400, DALLAS TX 75201
Kimberly S Lubel director P.O. BOX 696000, SAN ANTONIO TX 78269-6000
Valueact Capital Master Fund, L.p. 10 percent owner, other: See Remarks ONE LETTERMAN DRIVE, BUILDING D, 4TH FLOOR, SAN FRANCISCO CA 94129
Valueact Holdings Ii, L.p. 10 percent owner ONE LETTERMAN DRIVE, BUILDING D, FOURTH FLOOR, SAN FRANCISCO CA 94129
Scott C Beasley officer: Vice President 500 N AKARD ST. SUITE 400, DALLAS TX 75201
Reid S Essl officer: Pres Constr. Products 500 N AKARD ST. SUITE 400, DALLAS TX 75201

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