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Triumph Group Financial Strength

: 3 (As of Jun. 2022)
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Triumph Group has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Triumph Group Inc displays poor financial strength. Usually, this is caused by too much debt for the company.

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.

Triumph Group's Interest Coverage for the quarter that ended in Jun. 2022 was 0.48. Triumph Group's debt to revenue ratio for the quarter that ended in Jun. 2022 was 1.14. As of today, Triumph Group's Altman Z-Score is 0.46.


Competitive Comparison

For the Aerospace & Defense subindustry, Triumph Group'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.

   

Triumph Group Financial Strength Distribution

For the Aerospace & Defense industry and Industrials sector, Triumph Group's Financial Strength distribution charts can be found below:

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



Triumph Group 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:

Triumph Group's Interest Expense for the months ended in Jun. 2022 was $-32 Mil. Its Operating Income for the months ended in Jun. 2022 was $15 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $1,587 Mil.

Triumph Group'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*15.433/-31.912
=0.48

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

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Triumph Group Incs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

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

Triumph Group'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
=(2.968 + 1587.073) / 1397.536
=1.14

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.

Triumph Group has a Z-score of 0.46, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.46 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.


Triumph Group  (NYSE:TGI) 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.

Triumph Group has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Triumph Group Financial Strength Related Terms

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


Triumph Group Business Description

Triumph Group logo
Traded in Other Exchanges
Address
899 Cassatt Road, Suite 210, Berwyn, PA, USA, 19312
Triumph Group Inc designs and manufactures a broad portfolio of aerostructures, aircraft components, and systems for the aviation industry. It serves a worldwide customer base of players in the commercial, business, and military markets. The company operates under two operating segments: Systems & Support,, which designs, develops and supports proprietary components; and Aerospace structures, which supplies large metallic and composite structures to a wide range of manufacturers.
Executives
Keating Neal J director C/O KAMAN CORPORATION PO BOX 1 BLOOMFIELD CT 06002
Goglia Richard A director 870 WINTER STREET WALTHAM MA 02451
Humpton Barbara director 899 CASSATT ROAD SUITE 210 BERWYN PA 19312
Repplier Colleen C director 1205 KIMBALL BLVD. JASPER IN 47546
Garton Daniel P director 4333 AMON CARTER BLVD FORT WORTH TX 76155
Mansfield William L director 2301 INDUSTRIAL DR. NEENAH WI 54956
Bourgon Paul director 1550 LIBERTY RIDGE DRIVE, SUITE 100 WAYNE PA 19464
Spencer Larry O director 2000 N M-63 BENTON HARBOR MI 49022
Eberhart Ralph E director 909 N. WASHINGTON STREET ALEXANDRIA VA 22314
Hickton Dawne S director 148 KENYON RD PITTSBURGH PA 15205
Palmer Adam Joseph director 1001 PENNSYLVANIA AVENUE, NW SUITE 220 S WASHINGTON DC 20004
Turner Lance R. officer: SVP, Human Resources 899 CASSATT ROAD SUITE 210 BERWYN PA 19312
Kircher William C. officer: EVP, Product Support C/O TRIUMPH GROUP, INC. 899 CASSATT ROAD, SUITE 210 BERWYN PA 19312
Dubey Frank officer: EVP, Integrated Systems 899 CASSATT ROAD, SUITE 210 BERWYN PA 19312
Allen Jennifer H. officer: SVP, GC and Secretary CIRCOR INTERNATIONAL, INC. 30 CORPORATE DRIVE, SUITE 200 BURLINGTON MA 01803

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