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IHS Markit Financial Strength

: 5 (As of Aug. 2021)
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IHS Markit has the Financial Strength Rank of 5.

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.

IHS Markit's Interest Coverage for the quarter that ended in Aug. 2021 was 5.80. IHS Markit's debt to revenue ratio for the quarter that ended in Aug. 2021 was 1.10. As of today, IHS Markit's Altman Z-Score is 4.88.


Competitive Comparison

For the Consulting Services subindustry, IHS Markit'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.

   

IHS Markit Financial Strength Distribution

For the Business Services industry and Industrials sector, IHS Markit's Financial Strength distribution charts can be found below:

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



IHS Markit 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:

IHS Markit's Interest Expense for the months ended in Aug. 2021 was $-55 Mil. Its Operating Income for the months ended in Aug. 2021 was $318 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Aug. 2021 was $4,913 Mil.

IHS Markit's Interest Coverage for the quarter that ended in Aug. 2021 is

Interest Coverage=-1*Operating Income (Q: Aug. 2021 )/Interest Expense (Q: Aug. 2021 )
=-1*317.7/-54.8
=5.80

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

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

IHS Markit's Debt to Revenue Ratio for the quarter that ended in Aug. 2021 is

Debt to Revenue Ratio=Total Debt (Q: Aug. 2021 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(291.9 + 4912.8) / 4722
=1.10

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.

IHS Markit has a Z-score of 4.88, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.88 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.


IHS Markit  (NYSE:INFO) 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.

IHS Markit has the Financial Strength Rank of 5.


IHS Markit Financial Strength Related Terms

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


IHS Markit Business Description

IHS Markit logo
Industry
Industrials » Business Services NAICS : 561499 SIC : 7389
Traded in Other Exchanges
Address
25 Ropemaker Street, 4th Floor, Ropemaker Place, London, GBR, EC2Y 9LY
IHS Markit is a leading provider of data and analytics to corporate and sovereign clients across a wide variety of industries. Financial markets accounted for 42% of fiscal 2020 revenue, transportation 27%, resources (energy and chemicals) 20%, and CMS (consolidated markets) 11%. Approximately 60% of fiscal 2020 revenue came from the United States. IHS Markit has approximately 16,000 employees worldwide. About 74% of fiscal 2020 revenue was recurring and fixed, 14% recurring and variable, and 12% non-recurring. S&P Global has offered to acquire IHS Markit, with holders of the target firm set to receive 0.2838 shares of the combined entity (a little less than one third of the total), in a deal valued at $44 billion upon announcement.

IHS Markit Headlines

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