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AYI (Acuity) Financial Strength : 8 (As of May. 2025)


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What is Acuity Financial Strength?

Acuity has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Acuity Inc shows strong financial strength.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and 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.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Acuity's Interest Coverage for the quarter that ended in May. 2025 was 11.61. Acuity's debt to revenue ratio for the quarter that ended in May. 2025 was 0.23. As of today, Acuity's Altman Z-Score is 5.49.


Competitive Comparison of Acuity's Financial Strength

For the Electrical Equipment & Parts subindustry, Acuity'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.


Acuity's Financial Strength Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Acuity's Financial Strength distribution charts can be found below:

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


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Acuity 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:

Acuity's Interest Expense for the months ended in May. 2025 was $-15 Mil. Its Operating Income for the months ended in May. 2025 was $170 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in May. 2025 was $1,062 Mil.

Acuity's Interest Coverage for the quarter that ended in May. 2025 is

Interest Coverage=-1*Operating Income (Q: May. 2025 )/Interest Expense (Q: May. 2025 )
=-1*169.5/-14.6
=11.61

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

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

Acuity's Debt to Revenue Ratio for the quarter that ended in May. 2025 is

Debt to Revenue Ratio=Total Debt (Q: May. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(23.3 + 1062.3) / 4714.4
=0.23

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.

Acuity has a Z-score of 5.49, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 5.49 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.


Acuity  (NYSE:AYI) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Acuity has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.


Acuity Financial Strength Related Terms

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


Acuity Business Description

Traded in Other Exchanges
Address
11710 Plaza America Drive, Suite 700, Reston, VA, USA, 20190
Acuity is a leading industrial technology company that offers lighting, lighting controls, and intelligent building solutions. Acuity, Inc. designs, manufactures, and brings to market products and services relating to these and other offerings. Acuity, Inc. has two reportable segments: Acuity Brands Lighting and Acuity Intelligent Spaces. ABL sells commercial, architectural, and specialty lighting, including components and control systems. AIS offers building management and audio/visual solutions to help make buildings intelligent.
Executives
Barry R Goldman officer: SVP & General Counsel 1170 PEACHTREE STREET, NE, SUITE 2300, ATLANTA GA 30309
Maya Leibman director 4333 AMON CARTER BLVD, FORT WORTH TX 76155
Karen J Holcom officer: Interim CFO 1170 PEACHTREE STREET, NE, SUITE 2400, ATLANTA GA 30309
Dianne B Mills officer: SVP & Chief HR Officer C/O ACUITY BRANDS, INC., 1170 PEACHTREE STREET, NE, STE 2300, ATLANTA GA 30309
Laura O'shaughnessy director C/O VROOM, INC., 1375 BROADWAY, FLOOR 11, NEW YORK NY 10018
Michael J Bender director 3980 BAUGHMAN GRANT ROAD, NEW ALBANY OH 43054
Marcia J Avedon director C/O INGERSOLL-RAND COMPANY, 800-E BEATY STREET, DAVIDSON NC 28036
Mark Sachleben director C/O NEW RELIC, INC., 188 SPEAR STREET, STE. 1200, SAN FRANCISCO CA 94105
Peter C Browning director GMS INC., 100 CRESCENT CENTRE PARKWAY, SUITE 800, TUCKER GA 30084
Mary A Winston director 557 BROADWAY, C/O SCHOLASTIC CORP, NEW YORK NY 10012
Neil Ashe director, officer: President & CEO C/O ACUITY BRANDS, INC., 1170 PEACHTREE STREET, NE, STE 2300, ATLANTA GA 30309
Robert F Mccullough director 1170 PEACHTREE STREET, NE, SUITE 2300, ATLANTA GA 300309
Ray M Robinson director 1170 PEACHTREE STREET NE, SUITE 2300, ATLANTA GA 30309
Dillard George Douglas Jr director 1170 PEACHTREE STREET NE, SUITE 2300, ATLANTA GA 30309
W. Patrick Battle director 1170 PEACHTREE STREET NE, SUITE 2300, ATLANTA X1 30309