GURUFOCUS.COM » STOCK LIST » USA » NYSE » Mayville Engineering Co Inc (NYSE:MEC) » Definitions » Financial Strength
Switch to:

Mayville Engineering Co Financial Strength

: 5 (As of Jun. 2022)
View and export this data going back to 2019. Start your Free Trial

Mayville Engineering Co 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.

Mayville Engineering Co's Interest Coverage for the quarter that ended in Jun. 2022 was 9.92. Mayville Engineering Co's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.21. As of today, Mayville Engineering Co's Altman Z-Score is 1.68.


Competitive Comparison

For the Metal Fabrication subindustry, Mayville Engineering Co'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.

   

Mayville Engineering Co Financial Strength Distribution

For the Industrial Products industry and Industrials sector, Mayville Engineering Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Mayville Engineering Co's Financial Strength falls into.



Mayville Engineering Co 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:

Mayville Engineering Co's Interest Expense for the months ended in Jun. 2022 was $-0.8 Mil. Its Operating Income for the months ended in Jun. 2022 was $7.6 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $109.6 Mil.

Mayville Engineering Co'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*7.586/-0.765
=9.92

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

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

Mayville Engineering Co'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
=(4.803 + 109.594) / 553.348
=0.21

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.

Mayville Engineering Co has a Z-score of 1.68, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.68 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.


Mayville Engineering Co  (NYSE:MEC) 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.

Mayville Engineering Co has the Financial Strength Rank of 5.


Mayville Engineering Co Financial Strength Related Terms

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


Mayville Engineering Co Business Description

Mayville Engineering Co logo
Traded in Other Exchanges
N/A
Address
715 South Street, Mayville, WI, USA, 53050
Mayville Engineering Co Inc is involved in a manufacturing partner that provides a broad range of prototyping and tooling, production fabrication, coating, assembly, and aftermarket components. Its customers operate in diverse end markets, including heavy- and medium-duty commercial vehicles, construction, powersports, agriculture, military, and other end markets. Its services comprise stamping, shearing, fiber laser cutting, forming, drilling, tapping, grinding, tube bending, machining, welding, assembly, and logistic services.
Executives
Kent Jennifer J. director QUAD/GRAPHICS, INC. N61 W23044 HARRY'S WAY SUSSEX WI 53089-3995
Stille Randall P officer: Chief Operating Officer 715 SOUTH STREET MAYVILLE WI 53050
Mance Stephen P. officer: Chief Operating Officer 715 SOUTH STREET MAYVILLE WI 53050
Fisher Steven L director 100 N.E. ADAMS STREET PEORIA IL 61629
Carlson Allen J director 1500 WEST UNIVERSITY PARKWAY SARASOTA FL 34243
Christen Timothy L director 715 SOUTH STREET MAYVILLE WI 53050
Rothman Jay O. director C/O QUAD/GRAPHICS, INC. N61 W23044 HARRY'S WAY SUSSEX WI 53089
Butz Todd M officer: Chief Financial Officer 715 SOUTH STREET MAYVILLE WI 53050
Kamphuis Robert D director, officer: Chairman, Pres. & CEO 715 SOUTH STREET MAYVILLE WI 53050
Raber Ryan F officer: EVP - Sales & Marketing 715 SOUTH STREET MAYVILLE WI 53050
Sanderson Clifford O officer: Vice President - HR 715 SOUTH STREET MAYVILLE WI 53050
Welak Eric J officer: EVP - Fabrication 715 SOUTH STREET MAYVILLE WI 53050
Michels Patrick D director 715 SOUTH STREET MAYVILLE WI 53050
St. Peter John A director 715 SOUTH STREET MAYVILLE WI 53050
Johnson Craig E director 715 SOUTH STREET MAYVILLE WI 53050

Mayville Engineering Co Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)