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US Foods Holding Financial Strength

: 5 (As of Jun. 2022)
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US Foods Holding 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.

US Foods Holding's Interest Coverage for the quarter that ended in Jun. 2022 was 2.50. US Foods Holding's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.15. As of today, US Foods Holding's Altman Z-Score is 3.20.


Competitive Comparison

For the Food Distribution subindustry, US Foods Holding'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.

   

US Foods Holding Financial Strength Distribution

For the Retail - Defensive industry and Consumer Defensive sector, US Foods Holding's Financial Strength distribution charts can be found below:

* The bar in red indicates where US Foods Holding's Financial Strength falls into.



US Foods Holding 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:

US Foods Holding's Interest Expense for the months ended in Jun. 2022 was $-60 Mil. Its Operating Income for the months ended in Jun. 2022 was $150 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $4,912 Mil.

US Foods Holding'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*150/-60
=2.50

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

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

US Foods Holding'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
=(310 + 4912) / 35308
=0.15

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.

US Foods Holding has a Z-score of 3.20, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.2 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.


US Foods Holding  (NYSE:USFD) 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.

US Foods Holding has the Financial Strength Rank of 5.


US Foods Holding Financial Strength Related Terms

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


US Foods Holding Business Description

US Foods Holding logo
Traded in Other Exchanges
Address
9399 West Higgins Road, Suite 100, Rosemont, IL, USA, 60018
US Foods is the second- largest U.S. food-service distributor behind Sysco, holding 10% market share of the highly fragmented food-service distribution industry. US Foods distributes more than 400,000 food and nonfood products to the healthcare and hospitality industries (collectively 22% of 2021 sales), restaurants (61%), and education, government facilities, and grocers (17%). In addition to its delivery business, the firm has 80 cash and carry stores under the Chef'Store banner. After Sysco's attempt to purchase US Foods failed to gain federal approval in 2015, US Foods entered the public market via an initial public offering.
Executives
Sachem Head Gp Llc other: See Remarks 250 WEST 55TH STREET, 34TH FLOOR NEW YORK NY 10019
Toy David A director 9399 WEST HIGGINS ROAD SUITE 100 ROSEMONT IL 60018
Barber James J. director 55 GLENLAKE PARKWAY, NE ATLANTA GA 30328
Uncas Gp Llc other: See Remarks 250 WEST 55TH STREET, 34TH FLOOR NEW YORK NY 10019
Sachem Head Capital Management Lp other: See Remarks 250 WEST 55TH STREET 34TH FLOOR NEW YORK NY 10019
Ferguson Scott D. director 250 WEST 55TH STREET, 34TH FLOOR NEW YORK NY 10019
Gottschalk Marla C director C/O POTBELLY CORPORATION 111 NORTH CANAL, SUITE 850 CHICAGO IL 60606
Roach Quentin director 9399 W. HIGGINS ROAD SUITE 100 ROSEMONT IL 60018
Tonnison John A officer: Other 5350 TECH DATA DRIVE CLEARWATER FL 33760
Kkr Fresh Holdings L.p. 10 percent owner C/O KOHLBERG KRAVIS ROBERTS & CO. L.P. 30 HUDSON YARDS NEW YORK NY 10001
Kkr Fresh Holdings Gp Llc 10 percent owner C/O KOHLBERG KRAVIS ROBERTS & CO. L.P. 30 HUDSON YARDS NEW YORK NY 10001
Kkr Fresh Aggregator Gp Llc 10 percent owner C/O KOHLBERG KRAVIS ROBERTS & CO. L.P. 30 HUDSON YARDS NEW YORK NY 10001
Kkr Fresh Aggregator L.p. 10 percent owner C/O KOHLBERG KRAVIS ROBERTS & CO. L.P. 30 HUDSON YARDS NEW YORK NY 10001
Kkr Americas Fund Xii L.p. 10 percent owner C/O KOHLBERG KRAVIS ROBERTS & CO. L.P. 30 HUDSON YARDS NEW YORK NY 10001
Kkr Group Holdings Corp. 10 percent owner C/O KOHLBERG KRAVIS ROBERTS & CO. L.P. 30 HUDSON YARDS NEW YORK NY 10001

US Foods Holding Headlines

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