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MMS (Maximus) Financial Strength : 6 (As of Mar. 2025)


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What is Maximus Financial Strength?

Maximus has the Financial Strength Rank of 6.

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.

Maximus's Interest Coverage for the quarter that ended in Mar. 2025 was 7.13. Maximus's debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.30. As of today, Maximus's Altman Z-Score is 3.15.


Competitive Comparison of Maximus's Financial Strength

For the Specialty Business Services subindustry, Maximus'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.


Maximus's Financial Strength Distribution in the Business Services Industry

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

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


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Maximus 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:

Maximus's Interest Expense for the months ended in Mar. 2025 was $-21 Mil. Its Operating Income for the months ended in Mar. 2025 was $153 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was $1,534 Mil.

Maximus'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*152.968/-21.469
=7.13

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

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

Maximus'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
=(85.843 + 1534.233) / 5447.144
=0.30

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.

Maximus has a Z-score of 3.15, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.15 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.


Maximus  (NYSE:MMS) 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.

Maximus has the Financial Strength Rank of 6.


Maximus Financial Strength Related Terms

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


Maximus Business Description

Traded in Other Exchanges
Address
1600 Tysons Boulevard, McLean, VA, USA, 22102
Maximus Inc designs, develops, and delivers programs, enabling people to access vital government services. It translates health and human services public policy into operating models that achieve outcomes for governments at scale. The company covers a broad array of services, including the operation of large health insurance eligibility and enrollment programs; clinical services, including assessments, appeals, and independent medical reviews; and technology services. The company operates through the following segments; U.S. Federal Services, U.S. Services, and Outside the U.S. A majority of its revenue is derived from the U.S. Federal Services segment which engages with various U.S. federal government agencies to deliver clinical services, maintenance services, and technology solutions.
Executives
Jan Madsen director 11808 MIRACLE DRIVE, OMAHA NE 68154
Gayathri Rajan director 1891 METRO CENTER DRIVE, RESTON X1 20190
Michael J. Warren director C/O WALKER & DUNLOP, INC., 7272 WISCONSIN AVENUE, SUITE 1300, BETHESDA MD 20814
Ilene R. Baylinson officer: Group General Manager 1891 METRO CENTER DRIVE, RESTON VA 20190
Bruce Caswell other: Group President - Human Svcs 11419 SUNSET HILLS ROAD, RESTON VA 20190-5207
John J Haley director 901 N GLEBE ROAD, ARLINGTON VA 22203
Raymond B Ruddy director C/O MAXIMUS INC, 11419 SUNSET HILLS ROAD, RESTON VA 20190
Michelle F. Link officer: Chief Human Resources Officer 1891 METRO CENTER DRIVE, RESTON VA 20190
David Mutryn officer: Chief Financial Officer 1891 METRO CENTER DRIVE, RESTON VA 20190
Teresa Weipert officer: General Mgr US Federal Segment 1891 METRO CENTER DRIVE, RESTON VA 20190
Theresa D Golinvaux officer: Principal Accounting Officer 9300 LEE HIGHWAY, FAIRFAX VA 20131
John Thomas Martinez officer: Secretary and General Counsel 1600 TYSONS BLVD, #1400, MCLEAN VA 22102
David Francis officer: General Counsel C/O MAXIMUS INC, 11419 SUNSET HILLS RD, RESTON VA 20190
Richard A Montoni director, officer: CEO and Director C/O MAXIMUS INC, 11419 SUNSET HILLS RD, RESTON VA 20190
Richard John Nadeau officer: Chief Financial Officer 1300 WILSON BLVD., SUITE 400, ARLINGTON VA 22209