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Signify Health Financial Strength

: 6 (As of Jun. 2022)
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Signify Health has the Financial Strength Rank of 6.

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.

Signify Health's Interest Coverage for the quarter that ended in Jun. 2022 was 3.04. Signify Health's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.37. As of today, Signify Health's Altman Z-Score is 4.45.


Competitive Comparison

For the Health Information Services subindustry, Signify Health'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.

   

Signify Health Financial Strength Distribution

For the Healthcare Providers & Services industry and Healthcare sector, Signify Health's Financial Strength distribution charts can be found below:

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



Signify Health 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:

Signify Health's Interest Expense for the months ended in Jun. 2022 was $-4.6 Mil. Its Operating Income for the months ended in Jun. 2022 was $14.0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $362.4 Mil.

Signify Health'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*14/-4.6
=3.04

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

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

Signify Health'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
=(3.5 + 362.4) / 984.8
=0.37

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.

Signify Health has a Z-score of 4.45, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.45 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.


Signify Health  (NYSE:SGFY) 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.

Signify Health has the Financial Strength Rank of 6.


Signify Health Financial Strength Related Terms

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


Signify Health Business Description

Signify Health logo
Traded in Other Exchanges
N/A
Address
800 Connecticut Avenue, 3rd Floor, Norwalk, CT, USA, 06854
Signify Health Inc is a healthcare technology company that leverages advanced analytics, technology, and nationwide healthcare provider networks to create and power value-based payment programs. The customers include health plans, governments, employers, health systems and physician groups. Its operating segment includes Home and Community Services and Episodes of Care Services. The company generates maximum revenue from the Home and Community Services segment.
Executives
Goldberg Arnold director C/O SIGNIFY HEALTH, INC. 800 CONNECTICUT AVE NORWALK CT 06854
Pettijohn Sam officer: Chief Growth Officer C/O SIGNIFY HEALTH, INC. 800 CONNECTICUT AVE NORWALK CT 06854
Dixon Heather Brianne director AETNA INC. 151 FARMINGTON AVENUE HARTFORD CT 06156
Boumenot Peter officer: Chief Product Officer 800 CONNECTICUT AVENUE NORWALK CT 06854
Builder Josh officer: Chief Technology Officer 800 CONNECTICUT AVENUE NORWALK CT 06854
Douty Laurel officer: EVP, Clinic. Ops, Care Srvces 800 CONNECTICUT AVENUE NORWALK CT 06854
Clayton Taj J. director 800 CONNECTICUT AVENUE NORWALK CT 06854
Peterson Kyle B. director 800 CONNECTICUT AVENUE NORWALK CT 06854
Rothman Marc D officer: Chief Medical Officer 800 CONNECTICUT AVENUE NORWALK CT 06854
New Mountain Partners V, L.p. director, 10 percent owner 787 SEVENTH AVENUE, 49TH FLOOR NEW YORK NY 10019
Mcananey Adam officer: General Counsel and Secretary 800 CONNECTICUT AVENUE NORWALK CT 06854
Riefberg Vivian E. director 800 CONNECTICUT AVENUE NORWALK CT 06854
Remedy Acquisition L.p. director, 10 percent owner 1633 BROADWAY 48TH FLOOR NEW YORK NY 10019
New Mountain Partners V (aiv-c), L.p. director, 10 percent owner 1633 BROADWAY 48TH FLOOR NEW YORK NY 10019
New Mountain Investments V, L.l.c. director, 10 percent owner 1633 BROADWAY 48TH FLOOR NEW YORK NY 10019

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