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CF Industries Holdings Financial Strength

: 7 (As of Jun. 2022)
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CF Industries Holdings 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.

CF Industries Holdings's Interest Coverage for the quarter that ended in Jun. 2022 was 23.90. CF Industries Holdings's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.24. As of today, CF Industries Holdings's Altman Z-Score is 4.60.


Competitive Comparison

For the Agricultural Inputs subindustry, CF Industries Holdings'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.

   

CF Industries Holdings Financial Strength Distribution

For the Agriculture industry and Basic Materials sector, CF Industries Holdings's Financial Strength distribution charts can be found below:

* The bar in red indicates where CF Industries Holdings's Financial Strength falls into.



CF Industries Holdings 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:

CF Industries Holdings's Interest Expense for the months ended in Jun. 2022 was $-80 Mil. Its Operating Income for the months ended in Jun. 2022 was $1,912 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $3,111 Mil.

CF Industries Holdings's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*1912/-80
=23.90

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

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

CF Industries Holdings's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(87 + 3111) / 13556
=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.

CF Industries Holdings has a Z-score of 4.60, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.6 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.


CF Industries Holdings  (NYSE:CF) 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.

CF Industries Holdings has the Financial Strength Rank of 7.


CF Industries Holdings Financial Strength Related Terms

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


CF Industries Holdings Business Description

CF Industries Holdings logo
Address
4 Parkway North, Suite 400, Deerfield, IL, USA, 60015
CF Industries is a leading producer and distributor of nitrogen fertilizers. The company operates seven nitrogen facilities in North America and holds joint-venture interests in further production capacity in the United Kingdom and Trinidad and Tobago. CF makes nitrogen primarily using low-cost U.S. natural gas as its feedstock, making CF one of the lowest-cost nitrogen producers globally. The company is also investing in carbon-free blue and green ammonia, which can be used an alternative fuel to hydrogen or as a means to transport hydrogen.
Executives
Madrazo Yris Jesus director C/O CF INDUSTRIES HOLDINGS, INC. 4 PARKWAY NORTH DEERFIELD IL 60015
Dehaas Deborah L director 3005 HIGHLAND PARKWAY, SUITE 200 DOWNERS GROVE IL 60515
Dempsey Linda M officer: VP, Public Affairs C/O CF INDUSTRIES HOLDINGS, INC. 4 PARKWAY NORTH, SUITE 400 DEERFIELD IL 60015
Malik Ashraf K officer: Sr. VP, Manufacturing & D'istn C/O CF INDUSTRIES HOLDINGS, INC. 4 PARKWAY NORTH, SUITE 400 DEERFIELD IL 60015
Ahmed Javed director C/O CF INDUSTRIES HOLDINGS, INC. 4 PARKWAY NORTH, SUITE 400 DEERFIELD IL 60015
White Celso L. director 1801 CALIFORNIA STREET, SUITE 4600 DENVER CO 80202
Hopkins David P officer: Managing Dir. CF Fert. UK C/O CF INDUSTRIES HOLDINGS, INC. 4 PARKWAY NORTH, SUITE 400 DEERFIELD IL 60015
O'brien Rosemary L officer: VP, Public Affairs C/O CF INDUSTRIES HOLDINGS, INC. 4 PARKWAY NORTH, SUITE 400 DEERFIELD IL 60015
Menzel Susan L officer: Sr. VP, Human Resources C/O CF INDUSTRIES HOLDINGS, INC. FOUR PARKWAY NORTH DEERFIELD IL 60015
Toelle Michael director C/O CF INDUSTRIES HOLDINGS INC 4 PARKWAY NORTH - SUITE 400 DEERFIELD IL 60015
Eaves John W director 1 CITYPLACE ONE STE 300 ST LOUIS MO 63141
Noonan Anne P director 25435 HARVARD RD BEACHWOOD OH 44122
Wagler Theresa E director 7575 W JEFFERSON BLVD FORT WAYNE IN 46804
Bohn Christopher D officer: VP, Supply Chain C/O CF INDUSTRIES HOLDINGS, INC. 4 PARKWAY NORTH, SUITE 400 DEERFIELD IL 60015
Hall Adam L officer: VP, Corporate Development C/O CF INDUSTRIES HOLDINGS, INC. 4 PARKWAY NORTH, SUITE 400 DEERFIELD IL 60015

CF Industries Holdings Headlines

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