USA Compression Partners LP (USA Compression Partners LP) Financial Strength : 3 (As of Dec. 2023)

Competitive Comparison of USA Compression Partners LP's Financial Strength

For the Oil & Gas Equipment & Services subindustry, USA Compression Partners LP'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.

USA Compression Partners LP's Financial Strength Distribution in the Oil & Gas Industry

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

* The bar in red indicates where USA Compression Partners LP's Financial Strength falls into.

USA Compression Partners LP 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:

USA Compression Partners LP's Interest Expense for the months ended in Dec. 2023 was $-44.8 Mil. Its Operating Income for the months ended in Dec. 2023 was $70.8 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $2,350.8 Mil.

USA Compression Partners LP's Interest Coverage for the quarter that ended in Dec. 2023 is

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. USA Compression Partners LP interest coverage is 1.43, which is low.

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

USA Compression Partners LP's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

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.

USA Compression Partners LP has a Z-score of 1.22, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.22 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.

USA Compression Partners LP  (NYSE:USAC) 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.

USA Compression Partners LP 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.

USA Compression Partners LP Financial Strength Related Terms

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USA Compression Partners LP (USA Compression Partners LP) Business Description