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KN (Knowles) Financial Strength : 7 (As of Mar. 2025)


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What is Knowles Financial Strength?

Knowles has the Financial Strength Rank of 7.

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.

Knowles's Interest Coverage for the quarter that ended in Mar. 2025 was 2.37. Knowles's debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.40. As of today, Knowles's Altman Z-Score is 2.17.


Competitive Comparison of Knowles's Financial Strength

For the Electronic Components subindustry, Knowles'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.


Knowles's Financial Strength Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Knowles's Financial Strength distribution charts can be found below:

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


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Knowles 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:

Knowles's Interest Expense for the months ended in Mar. 2025 was $-2.7 Mil. Its Operating Income for the months ended in Mar. 2025 was $6.4 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was $136.3 Mil.

Knowles'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*6.4/-2.7
=2.37

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

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

Knowles'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
=(73.5 + 136.3) / 528.8
=0.40

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.

Knowles has a Z-score of 2.17, indicating it is in Grey Zones. This implies that Knowles is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.17 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* 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.


Knowles  (NYSE:KN) 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.

Knowles has the Financial Strength Rank of 7.


Knowles Financial Strength Related Terms

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


Knowles Business Description

Traded in Other Exchanges
Address
1151 Maplewood Drive, Itasca, IL, USA, 60143
Knowles Corp is engaged in the manufacturing of micro-acoustic microphones and balanced armature speakers, audio solutions, high-performance capacitors, and radio frequency filtering products. It operates in two segments; the Precision Devices segment specializes in the design and delivery of high-performance capacitor products and RF solutions; and Medtech & Specialty Audio segment designs and manufactures microphones and balanced armature speakers used in applications. The majority of its revenue comes from the Precision Devices. Geographically, it operates in United States, Asia, Other Americas, Europe and Others, out of which United States generates maximum revenue.
Executives
Raymond D. Cabrera officer: Senior VP, HR & CAO KNOWLES CORPORATION, 1151 MAPLEWOOD DRIVE, ITASCA IL 60143
Robert J Perna officer: Senior VP, Gen.Cnsl.,Secretary 1151 MAPLEWOOD DRIVE, ITASCA IL 60143
John S. Anderson officer: Senior VP & CFO KNOWLES CORPORATION, 1151 MAPLEWOOD DRIVE, ITASCA IL 60143
Jeffrey Niew director, officer: President & CEO KNOWLES CORPORATION, 1151 MAPLEWOOD DRIVE, ITASCA IL 60143
Bastarrica Air A. Jr. officer: Vice President & Controller 1151 MAPLEWOOD DR, ITASCA IL 60143-2071
Daniel J. Giesecke officer: Senior VP & COO KNOWLES CORPORATION, 1151 MAPLEWOOD DRIVE, ITASCA IL 60143
Keith Barnes director 10100 N TANTAU AVE, CUPERTINO CA 95014-2540
Cheryl L Shavers director 400 COLLINS ROAD NE, M/S 124-323, CEDAR RAPIDS IA 52498
Erania Brackett director C/O DENTSPLY SIRONA INC, 13320 BALLANTYNE CORPORATE PLACE, CHARLOTTE NC 28277
Daniel J Crowley director 870 WINTER STREET, WALTHAM MA 02451
Donald Macleod director
Michael S Wishart director SPANSION INC., 915 DEGUIGNE DRIVE, SUNNYVALE CA 94085-3836
Ronald Steven Jankov director 3875 FREEDOM CIRCLE, SUITE 900, SANTA CLARA CA 95054
Didier Hirsch director 5301 STEVENS CREEK BOULEVARD, SANTA CLARA CA 95051
Christian Scherp officer: Co-President, MCE KNOWLES CORPORATION, 1151 MAPLEWOOD DRIVE, ITASCA IL 60143