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Suncor Energy Financial Strength

: 5 (As of Jun. 2022)
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Suncor Energy 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.

Suncor Energy's Interest Coverage for the quarter that ended in Jun. 2022 was 18.59. Suncor Energy's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.27. As of today, Suncor Energy's Altman Z-Score is 1.91.


Competitive Comparison

For the Oil & Gas Integrated subindustry, Suncor Energy'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.

   

Suncor Energy Financial Strength Distribution

For the Oil & Gas industry and Energy sector, Suncor Energy's Financial Strength distribution charts can be found below:

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



Suncor Energy 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:

Suncor Energy's Interest Expense for the months ended in Jun. 2022 was $-251 Mil. Its Operating Income for the months ended in Jun. 2022 was $4,661 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $12,095 Mil.

Suncor Energy'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*4661.04342393/-250.70290534208
=18.59

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

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

Suncor Energy'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
=(1470.6341768197 + 12094.6579194) / 50406.123086535
=0.27

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.

Suncor Energy has a Z-score of 1.91, indicating it is in Grey Zones. This implies that Suncor Energy 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 1.91 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.


Suncor Energy  (NYSE:SU) 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.

Suncor Energy has the Financial Strength Rank of 5.


Suncor Energy Financial Strength Related Terms

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


Suncor Energy Business Description

Suncor Energy logo
Traded in Other Exchanges
Address
150 - 6th Avenue S.W., P.O. Box 2844, Calgary, AB, CAN, T2P 3E3
Suncor Energy Inc is an integrated energy company. The company's operations include oil sands development, production and upgrading, offshore oil and gas, petroleum refining in Canada and the U.S. and the company's PetroCanada retail and wholesale distribution networks. The company is developing petroleum resources while advancing the transition to a low-emissions future through investment in power, renewable fuels and hydrogen. It also conducts energy trading activities focused principally on the marketing and trading of crude oil, natural gas, byproducts, refined products and power.

Suncor Energy Headlines

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