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BAH (Booz Allen Hamilton Holding) Financial Strength : 6 (As of Mar. 2025)


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What is Booz Allen Hamilton Holding Financial Strength?

Booz Allen Hamilton Holding has the Financial Strength Rank of 6.

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.

Booz Allen Hamilton Holding's Interest Coverage for the quarter that ended in Mar. 2025 was 5.83. Booz Allen Hamilton Holding's debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.35. As of today, Booz Allen Hamilton Holding's Altman Z-Score is 4.39.


Competitive Comparison of Booz Allen Hamilton Holding's Financial Strength

For the Consulting Services subindustry, Booz Allen Hamilton Holding'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.


Booz Allen Hamilton Holding's Financial Strength Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Booz Allen Hamilton Holding's Financial Strength distribution charts can be found below:

* The bar in red indicates where Booz Allen Hamilton Holding's Financial Strength falls into.


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Booz Allen Hamilton Holding 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:

Booz Allen Hamilton Holding's Interest Expense for the months ended in Mar. 2025 was $-47 Mil. Its Operating Income for the months ended in Mar. 2025 was $275 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was $4,095 Mil.

Booz Allen Hamilton Holding's Interest Coverage for the quarter that ended in Mar. 2025 is

Interest Coverage=-1*Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*274.968/-47.196
=5.83

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

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

Booz Allen Hamilton Holding's Debt to Revenue Ratio for the quarter that ended in Mar. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(124 + 4095) / 11898.508
=0.35

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.

Booz Allen Hamilton Holding has a Z-score of 4.39, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.39 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.


Booz Allen Hamilton Holding  (NYSE:BAH) 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.

Booz Allen Hamilton Holding has the Financial Strength Rank of 6.


Booz Allen Hamilton Holding Financial Strength Related Terms

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Booz Allen Hamilton Holding Business Description

Traded in Other Exchanges
Address
8283 Greensboro Drive, McLean, VA, USA, 22102
Booz Allen Hamilton Holding Corp provides technology solutions in areas such as artificial intelligence, cybersecurity, and related fields. The company serves U.S. federal government agencies, commercial clients, and select international customers. It also provides technologies to evolve defense missions and delivers solutions to warfighters in the digital battlespace.
Executives
Joan Lordi Amble director AMERICAN EXPRESS COMPANY, 200 VESEY STREET, NEW YORK NY 10285
Nancy Laben officer: EVP and General Counsel, other: Member of 13D Group 8283 GREENSBORO DRIVE, MCLEAN VA 22102
Matthew Calderone officer: Executive Vice President 8283 GREENSBORO DRIVE, MCLEAN VA 22102
Richard Crowe officer: Executive Vice President 8283 GREENSBORO DRIVE, MCLEAN VA 22102
Melody C Barnes director 1631 MONUMENT AVENUE, RICHMOND VA 23220
Susan L Penfield officer: Executive Vice President 8283 GREENSBORO DRIVE, MCLEAN VA 22102
Judith Dotson officer: Executive Vice President 8283 GREENSBORO DRIVE, MCLEAN VA 22102
Thomas Pfeifer officer: Executive Vice President 8283 GREENSBORO DRIVE, MCLEAN VA 22102
Horacio Rozanski officer: Executive Vice President, other: Member of 13D Group 8283 GREENSBORO DRIVE, MCLEAN VA 22102
Kristine Anderson officer: Executive Vice President 8283 GREENSBORO DRIVE, MCLEAN VA 22102
Ralph W Shrader director, officer: President and CEO, other: Member of 13D Group 8283 GREENSBORO, MCLEAN VA 22102
Elizabeth M Thompson officer: SVP & Chief Personnel Officer, other: Member of 13D Group 8283 GREENSBORO DRIVE, MCLEAN VA 22102
Rory P Read director ONE DELL WAY, ROUND ROCK TX 78682
Lloyd Jr Howell officer: Executive Vice President, other: Member of 13D Group 8283 GREENSBORO DRIVE, MCLEAN VA 22102
Karen M Dahut officer: Senior Vice President, other: Member of 13D Group 8283 GREENSBORO DRIVE, MCLEAN VA 22102