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KBR Financial Strength

: 5 (As of Jun. 2022)
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KBR 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.

KBR's Interest Coverage for the quarter that ended in Jun. 2022 was 4.57. KBR's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.31. As of today, KBR's Altman Z-Score is 3.13.


Competitive Comparison

For the Engineering & Construction subindustry, KBR'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.

   

KBR Financial Strength Distribution

For the Construction industry and Industrials sector, KBR's Financial Strength distribution charts can be found below:

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



KBR 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:

KBR's Interest Expense for the months ended in Jun. 2022 was $-21 Mil. Its Operating Income for the months ended in Jun. 2022 was $96 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $1,925 Mil.

KBR'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*96/-21
=4.57

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

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

KBR'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
=(60 + 1925) / 6464
=0.31

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.

KBR has a Z-score of 3.13, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.13 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.


KBR  (NYSE:KBR) 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.

KBR has the Financial Strength Rank of 5.


KBR Financial Strength Related Terms

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


KBR Business Description

KBR logo
Traded in Other Exchanges
Address
601 Jefferson Street, Suite 3400, Houston, TX, USA, 77002
KBR (formerly Kellogg, Brown & Root) is global provider of technology, integrated engineering, procurement, and construction delivery, and operations and maintenance services. The company's business is organized into two segments: government solutions and maintainable technology solutions. KBR has customers in more than 75 countries, with operations in 40, and employs 36,000 people. The firm generated $7.3 billion in revenue in 2021.
Executives
Manzoni John Alexander Kcb director 601 JEFFERSON STREET HOUSTON TX 77002
Galindo Sonia officer: EVP and General Counsel C/O ROSETTA STONE 1621 NORTH KENT STREET, SUITE 1200 ARLINGTON VA 22209
Stewart Vincent R. director C/O AMERICAN PUBLIC EDUCATION, INC. 111 WEST CONGRESS STREET CHARLES TOWN WV 25414
Sabater Carlos A. director 1140 ALFONSO AVENUE CORAL GABLES FL 33146
Evans Shad E. officer: SVP, Finance Ops & Interim CAO 601 JEFFERSON STREET HOUSTON TX 77002
Myles Jennifer officer: EVP, Chief People Officer 601 JEFFERSON STREET HOUSTON TX 77002
Dugle Lynn A director 4803 STONECROFT BOULEVARD CHANTILLY VA 20151
Kelly Douglas Nick officer: President-Technology Solutions 601 JEFFERSON STREET, SUITE 3400 HOUSTON TX 77002
Barrie Andrew officer: President Gov't Solutions EMEA 601 JEFFERSON STREET HOUSTON TX 77002
Masiello Wendy Motlong director 601 JEFFERSON STREET HOUSTON TX 77002
Carney Raymond L. Jr. officer: VP & Chief Accounting Officer 10205 WESTHEIMER, SUITE 1000 HOUSTON TX 77042
Bright William Byron Jr. officer: President, KBRwyle 601 JEFFERSON STREET HOUSTON TX 77002
Sopp Mark W officer: EVP & Chief Financial Officer 601 JEFFERSON STREET, SUITE 3400 HOUSTON TX 77002
Wiederkehr Roger A. officer: President 601 JEFFERSON STREET HOUSTON TX 77002
Conlon Gregory Sean officer: President E&C APAC 601 JEFFERSON STREET HOUSTON TX 77002

KBR Headlines

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