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Leidos Holdings Financial Strength

: 5 (As of Jun. 2022)
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Leidos Holdings 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.

Leidos Holdings's Interest Coverage for the quarter that ended in Jun. 2022 was 5.52. Leidos Holdings's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.40. As of today, Leidos Holdings's Altman Z-Score is 2.51.


Competitive Comparison

For the Information Technology Services subindustry, Leidos 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.

   

Leidos Holdings Financial Strength Distribution

For the Software industry and Technology sector, Leidos Holdings's Financial Strength distribution charts can be found below:

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



Leidos 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:

Leidos Holdings's Interest Expense for the months ended in Jun. 2022 was $-50 Mil. Its Operating Income for the months ended in Jun. 2022 was $276 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $4,637 Mil.

Leidos 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*276/-50
=5.52

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

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

Leidos 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
=(1153 + 4637) / 14388
=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.

Leidos Holdings has a Z-score of 2.51, indicating it is in Grey Zones. This implies that Leidos Holdings 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 2.51 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.


Leidos Holdings  (NYSE:LDOS) 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.

Leidos Holdings has the Financial Strength Rank of 5.


Leidos Holdings Financial Strength Related Terms

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


Leidos Holdings Business Description

Leidos Holdings logo
Address
1750 Presidents Street, Reston, VA, USA, 20190
Leidos Holdings Inc is engaged in scientific, engineering, system integration, technical services, and solutions to various government entities and highly regulated industries, including the U.S. Department of Defense, Intelligence Community and the British Ministry of Defense. Areas of focus include intelligence and surveillance, cybersecurity, complex logistics, energy, and health.
Executives
Cook Stephen Allen officer: Group President 1750 PRESIDENTS STREET RESTON VA 20190
Carlini James F. officer: EVP, Chief Technology Officer 1750 PRESIDENTS STREET RESTON VA 20190
Kimball Carly Elizabeth officer: SVP, Corporate Controller 1750 PRESIDENTS STREET RESTON VA 20190
Waterston Maureen officer: Chief Human Resources Officer 1750 PRESIDENTS STREET RESTON VA 20190
Shanahan Patrick M director C/O RESILIENCE CAPITAL PARTNERS LLC 25101 CHAGRIN BLVD 350 BEACHWOOD OH 44122
Opiekun Deborah D. officer: Chief Business Development 1750 PRESIDENTS STREET RESTON VA 20190
Porter Elizabeth A officer: Group President 1750 PRESIDENTS STREET RESTON VA 20190
Moos James Robert officer: Group President 11951 FREEDOM DRIVE RESTON VA 20190
King David Arnold officer: Group President 11951 FREEDOM DRIVE RESTON VA 20190
Cage Christopher R officer: SVP and Corporate Comptroller 11951 FREEDOM DRIVE RESTON VA 20190
Engola Paul officer: Executive Vice President 11951 FREEDOM DRIVE RESTON VA 20190
Stevens Roy E officer: Chief of Business Development 11951 FREEDOM DRIVE RESTON VA 20190
Schmanske Mary Vicki officer: Group President 11951 FREEDOM DRIVE RESTON VA 20190
Kovarik Robert C Jr director C/O ALLIANCE BANKSHARES CORPORATION 14200 PARK MEADOW DR #200S CHANTILLY VA 20151
Howe Jerald S Jr officer: Executive VP & General Counsel

Leidos Holdings Headlines

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