GURUFOCUS.COM » STOCK LIST » USA » NYSE » Albertsons Companies Inc (NYSE:ACI) » Definitions » Financial Strength
Switch to:

Albertsons Financial Strength

: 6 (As of May. 2022)
View and export this data going back to 2020. Start your Free Trial

Albertsons 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.

Albertsons's Interest Coverage for the quarter that ended in May. 2022 was 4.90. Albertsons's debt to revenue ratio for the quarter that ended in May. 2022 was 0.15. As of today, Albertsons's Altman Z-Score is 3.47.


Competitive Comparison

For the Grocery Stores subindustry, Albertsons'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.

   

Albertsons Financial Strength Distribution

For the Retail - Defensive industry and Consumer Defensive sector, Albertsons's Financial Strength distribution charts can be found below:

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



Albertsons 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:

Albertsons's Interest Expense for the months ended in May. 2022 was $-139 Mil. Its Operating Income for the months ended in May. 2022 was $681 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in May. 2022 was $12,618 Mil.

Albertsons's Interest Coverage for the quarter that ended in May. 2022 is

Interest Coverage=-1*Operating Income (Q: May. 2022 )/Interest Expense (Q: May. 2022 )
=-1*680.7/-138.9
=4.90

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

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

Albertsons's Debt to Revenue Ratio for the quarter that ended in May. 2022 is

Debt to Revenue Ratio=Total Debt (Q: May. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1472.4 + 12618.4) / 93241.2
=0.15

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.

Albertsons has a Z-score of 3.47, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.47 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.


Albertsons  (NYSE:ACI) 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.

Albertsons has the Financial Strength Rank of 6.


Albertsons Financial Strength Related Terms

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


Albertsons Business Description

Albertsons logo
Traded in Other Exchanges
Address
250 Parkcenter Boulevard, Boise, ID, USA, 83706
Albertsons is the second- largest traditional grocer in America, operating 2,277 stores under more than 20 banners in 34 states (as of the end of fiscal 2020). Around 75% of stores have pharmacies, while nearly 20% also sell fuel. Albertsons has a significant private-label operation, accounting for around 20% of sales (excluding fuel). While its own brand assortment is mainly manufactured by third parties, Albertsons operates 20 food production plants (as of the end of fiscal 2020). Albertsons is a top-two grocer in two thirds of its major markets (as of early 2021, according to company data), and virtually all of its sales come from the United States.
Executives
Rainwater Evan officer: EVP, Supp Chain&Manufacturing 250 E. PARKCENTER BLVD. BOISE ID 83706
Gajial Mohammad Omer officer: EVP, Pharmacy & Health 250 E. PARKCENTER BLVD. BOISE ID 83706
Mccollam Sharon officer: President & CFO C/O OFFICEMAX INCORPORATED 263 SHUMAN BLVD. NAPERVILLE IL 60563
Saenz Jennifer officer: Chief Marketing Officer 250 E. PARKCENTER BLVD. BOISE ID 83706
Galbato Chan director 191 E NORTH AVENUE CAROL STREAM IL 60188
Stone West Mary E director C/O HASBRO, INC. 1011 NEWPORT AVENUE PAWTUCKET RI 02861
Babikian Shant director C/O HPS INVESTMENT PARTNERS, LLC 40 WEST 57TH STREET, 33RD FLOO NY 10019
Lubert-adler Real Estate Fund Vi-a, L.p. 10 percent owner, other: See remarks 2400 MARKET STREET, SUITE 301 PHILADELPHIA PA 19103
Jubilee Abs Holding Llc 10 percent owner, other: See Footnote (1) 4300 E. FIFTH AVE. COLUMBUS OH 43219
L-a Asset Management Services, L.p. 10 percent owner, other: See Remarks CIRA CENTRE, 2929 ARCH STREET PHILADELPHIA PA 19104
Klaff Realty Lp 10 percent owner, other: See Remarks 180 N. MICHIGAN AVE SUITE 300 CHICAGO IL 60601
Morris Susan officer: See Remarks ALBERTSONS COMPANIES, INC. 250 PARKCENTER BOULEVARD BOISE ID 83706
Dhanda Anuj officer: See Remarks ALBERTSONS COMPANIES, INC. 250 PARKCENTER BOULEVARD BOISE ID 83706
Lubert-adler Group V, L.p. 10 percent owner 2400 MARKET STREET, SUITE 301 PHILADELPHIA PA 19103
Lubert-adler Group V, Llc 10 percent owner 2400 MARKET STREET, SUITE 301 PHILADELPHIA PA 19103

Albertsons 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)