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Stanley Black & Decker Financial Strength

: 4 (As of Jun. 2022)
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Stanley Black & Decker has the Financial Strength Rank of 4.

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.

Stanley Black & Decker's Interest Coverage for the quarter that ended in Jun. 2022 was 3.52. Stanley Black & Decker's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.64. As of today, Stanley Black & Decker's Altman Z-Score is 1.41.


Competitive Comparison

For the Tools & Accessories subindustry, Stanley Black & Decker'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.

   

Stanley Black & Decker Financial Strength Distribution

For the Industrial Products industry and Industrials sector, Stanley Black & Decker's Financial Strength distribution charts can be found below:

* The bar in red indicates where Stanley Black & Decker's Financial Strength falls into.



Stanley Black & Decker 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:

Stanley Black & Decker's Interest Expense for the months ended in Jun. 2022 was $-78 Mil. Its Operating Income for the months ended in Jun. 2022 was $275 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $5,352 Mil.

Stanley Black & Decker'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*275.3/-78.2
=3.52

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

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

Stanley Black & Decker'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
=(5834.2 + 5351.8) / 17572
=0.64

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.

Stanley Black & Decker has a Z-score of 1.41, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.41 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.


Stanley Black & Decker  (NYSE:SWK) 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.

Stanley Black & Decker has the Financial Strength Rank of 4.


Stanley Black & Decker Financial Strength Related Terms

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


Stanley Black & Decker Business Description

Stanley Black & Decker logo
Address
1000 Stanley Drive, New Britain, CT, USA, 06053
Stanley Black & Decker Inc is a manufacturer of hand and power tools. The company operates three business segments: tools and storage, security, and industrial. Tools and storage, the largest segment by revenue, sells hand tools and power tools to professional end-users, distributors, retail consumers, and industrial customers. Security installs electronic security systems and provides electronic security services including alarm monitoring and video surveillance. Industrial sells engineered fastening products such as stud-welding systems, blind inserts and tools, and engineered plastic and mechanical fasteners. The largest end market is the United States of America.
Executives
Mitchell Adrian V director C/O MACY'S, INC. 151 WEST 34TH STREET NEW YORK NY 10001
Subasic Stephen officer: SVP, Chief HR Officer 1000 STANLEY DRIVE NEW BRITAIN CT 06053
Poul Mojdeh director 3M COMPANY OFFICE OF GENERAL COUNSEL 3M CENTER ST PAUL MN 55144-1000
Palmieri Jane director 2211 H.H. DOW WAY MIDLAND MI 48674
Robinson Graham officer: SVP & President of Industrial 1000 STANLEY DRIVE NEW BRITAIN CT 06053
Tan Irving director 170 WEST TASMAN DRIVE SAN JOSE CA 95134
Blackburn Robert officer: SVP, Global Operations 1000 STANLEY DRIVE NEW BRITAIN CT 06053
Stockton Dmitri L director 777 LONG RIDGE ROAD SYNCHRONY FINANCIAL C/O CORP. SECRETARY STAMFORD CT 06902
Raff Robert H Jr officer: President, Stanley Security 1000 STANLEY DRIVE NEW BRITAIN CT 06053
Scholefield James H director 2000 GALLOPING HILL ROAD KENILWORTH NJ 07033
Link Janet officer: SVP, General Counsel & Sec'y 6501 LEGACY DRIVE PLANO TX 75024
Belisle Jocelyn officer: VP, Chief Accounting Officer 1000 STANLEY DRIVE NEW BRITAIN CT 06053
Hankin Michael David director 901 SOUTH BOND STREET, SUITE 400 BALTIMORE MD 21231
Ayers Andrea J. director STANLEY BLACK & DECKER, IN. 1000 STANLEY DRIVE NEW BRITAIN CT 06053
Mcchesney Lee B officer: CFO of CDIY 1000 STANLEY DRIVE NEW BRITAIN CT 06053

Stanley Black & Decker Headlines

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