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Ecovyst Financial Strength

: 4 (As of Jun. 2022)
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Ecovyst has the Financial Strength Rank of 4.

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.

Ecovyst's Interest Coverage for the quarter that ended in Jun. 2022 was 3.77. Ecovyst's debt to revenue ratio for the quarter that ended in Jun. 2022 was 1.01. As of today, Ecovyst's Altman Z-Score is 1.10.


Competitive Comparison

For the Specialty Chemicals subindustry, Ecovyst'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.

   

Ecovyst Financial Strength Distribution

For the Chemicals industry and Basic Materials sector, Ecovyst's Financial Strength distribution charts can be found below:

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



Ecovyst 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:

Ecovyst's Interest Expense for the months ended in Jun. 2022 was $-8.9 Mil. Its Operating Income for the months ended in Jun. 2022 was $33.5 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $890.9 Mil.

Ecovyst'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*33.52/-8.888
=3.77

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

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

Ecovyst'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
=(17.374 + 890.869) / 900.688
=1.01

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.

Ecovyst has a Z-score of 1.10, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.1 is in distress zone. This implies bankruptcy possibility in the next two years.

* 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.


Ecovyst  (NYSE:ECVT) 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.

Ecovyst has the Financial Strength Rank of 4.


Ecovyst Financial Strength Related Terms

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


Ecovyst Business Description

Ecovyst logo
Traded in Other Exchanges
Address
300 Lindenwood Drive, Valleybrooke Corporate Center, Malvern, PA, USA, 19355-1740
Ecovyst Inc is a provider of catalysts, speciality materials, chemicals, and services that enable environmental improvements, enhance consumer products and increase personal safety. It manufactures speciality inorganic performance chemicals, speciality catalysts, and speciality glass materials. It sells products in the United States and other countries. Its operating segments are Ecoservices and Catalyst Technologies.
Executives
Brown Bryan K. director 717 TEXAS AVENUE SUITE 3300 HOUSTON TX 77002
Bradley David A. director 15710 JOHN F. KENNDEY BLVD, SUITE 300 HOUSTON TX 77032
Fogarty Kevin Michael director 30 GRAND GARDEN COURT THE WOODLANDS TX 77381
Feehan Michael officer: See Remarks C/O PQ GROUP HOLDINGS INC. 300 LINDENWOOD DRIVE MALVERN PA 19355
Schneberger Thomas officer: See Remarks C/O FMC CORP 2929 WALNUT STREET PHILADELPHIA PA 19104
Ward Susan F director 11465 JOHNS CREEK PARKWAY, SUITE 400 JOHNS CREEK GA 30097
Beninati Albert J Jr officer: See Remarks C/O PQ HOLDINGS GROUP INC. 300 LINDENWOOD DRIVE MALVERN PA 19355
Behrens Christopher C director CCMP CAPITAL ADVISORS, LP 277 PARK AVENUE, 27TH FLOOR NEW YORK NY 10172
Ineos Ltd 10 percent owner 38 HANS CRESCENT, KNIGHTSBRIDGE LONDON X0 SW1X 0LZ
Bitting Kurt officer: See Remarks C/O PQ GROUP HOLDINGS INC. 300 LINDENWOOD DRIVE MALVERN PA 19355
Kolberg Ray officer: See Remarks C/O PQ GROUP HOLDINGS INC. 300 LINDENWOOD DRIVE MALVERN PA 19355
Chariag Belgacem director, officer: CEO, President & Director TECHNO PARK SHEIKH ZAYED ROAD DUBAI C0 00000
Ccmp Capital Associates Iii Gp, Llc 10 percent owner C/O CCMP CAPITAL ADVISORS, LP 277 PARK AVENUE, 27TH FLOOR NEW YORK NY 10172
Ratcliffe James A 10 percent owner TEN TRINITY SQUARE LONDON X0 00000
Ferrall Paul officer: See Remarks C/O PQ GROUP HOLDINGS INC. 300 LINDENWOOD DRIVE MALVERN PA 19355

Ecovyst Headlines

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