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Acuity Brands Financial Strength

: 7 (As of May. 2022)
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Acuity Brands 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.

Acuity Brands's Interest Coverage for the quarter that ended in May. 2022 was 21.62. Acuity Brands's debt to revenue ratio for the quarter that ended in May. 2022 was 0.16. As of today, Acuity Brands's Altman Z-Score is 5.04.


Competitive Comparison

For the Electrical Equipment & Parts subindustry, Acuity Brands'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 Brands Financial Strength Distribution

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

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



Acuity Brands 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 Brands's Interest Expense for the months ended in May. 2022 was $-7 Mil. Its Operating Income for the months ended in May. 2022 was $143 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in May. 2022 was $548 Mil.

Acuity Brands'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*142.7/-6.6
=21.62

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

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

Acuity Brands'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
=(138.2 + 547.7) / 4242.4
=0.16

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 Brands has a Z-score of 5.04, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 5.04 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 Brands  (NYSE:AYI) 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.

Acuity Brands has the Financial Strength Rank of 7.


Acuity Brands Financial Strength Related Terms

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


Acuity Brands Business Description

Acuity Brands logo
Traded in Other Exchanges
Address
1170 Peachtree Street, N.E., Suite 2300, Atlanta, GA, USA, 30309-7676
Acuity Brands Inc is the parent company of Acuity Brands Lighting and other subsidiaries, which provide lighting products for commercial, institutional, industrial, and residential applications. These products include luminaires, lighting controls, lighting components, and integrated lighting systems that use a combination of light sources. Customers include electrical distributors, electric utilities, retail home improvement centers, and lighting showrooms. A majority of the firms' revenue is generated in the United States.
Executives
Sachleben Mark director C/O NEW RELIC, INC. 188 SPEAR STREET, STE. 1200 SAN FRANCISCO CA 94105
O'shaughnessy Laura director C/O VROOM, INC. 1375 BROADWAY, FLOOR 11 NEW YORK NY 10018
Mills Dianne B officer: SVP & Chief HR Officer C/O ACUITY BRANDS, INC. 1170 PEACHTREE STREET, NE, STE 2300 ATLANTA GA 30309
Leibman Maya director 4333 AMON CARTER BLVD FORT WORTH TX 76155
Ashe Neil director, officer: President & CEO C/O ACUITY BRANDS, INC. 1170 PEACHTREE STREET, NE, STE 2300 ATLANTA GA 30309
Goldman Barry R officer: SVP & General Counsel 1170 PEACHTREE STREET, NE SUITE 2300 ATLANTA GA 30309
Vernerey Laurent J officer: Executive Vice President 1170 PEACHTREE STREET, NE SUITE 2300 ATLANTA GA 30309
Dillard George Douglas Jr director 1170 PEACHTREE STREET NE SUITE 2300 ATLANTA GA 30309
Winston Mary A director 557 BROADWAY C/O SCHOLASTIC CORP NEW YORK NY 10012
Battle W. Patrick director 1170 PEACHTREE STREET NE SUITE 2300 ATLANTA X1 30309
Hance James H Jr director C/O ACUITY BRANDS, INC. 1170 PEACHTREE STR NE ATLANTA GA 30309
Pileggi Dominic J director 1170 PEACHTREE STREET, NE SUITE 2300 ATLANTA GA 30309
Wesley Norman H director 225 W WESTMINSTER LAKE FOREST IL 60045
Smith C. Dan officer: VP, Treasurer and Secretary 1170 PEACHTREE STREET NE SUITE 2400 ATLANTA GA 30309
Harnett Gordon D director 29400 LAKELAND BLVD WICKLIFFE OH 44092

Acuity Brands Headlines

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