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WTTR (Select Water Solutions) Financial Strength : 6 (As of Mar. 2025)


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What is Select Water Solutions Financial Strength?

Select Water Solutions has the Financial Strength Rank of 6.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and 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.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Select Water Solutions's Interest Coverage for the quarter that ended in Mar. 2025 was 3.57. Select Water Solutions's debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.19. As of today, Select Water Solutions's Altman Z-Score is 1.97.


Competitive Comparison of Select Water Solutions's Financial Strength

For the Oil & Gas Equipment & Services subindustry, Select Water Solutions'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.


Select Water Solutions's Financial Strength Distribution in the Oil & Gas Industry

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

* The bar in red indicates where Select Water Solutions's Financial Strength falls into.


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Select Water Solutions 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:

Select Water Solutions's Interest Expense for the months ended in Mar. 2025 was $-5 Mil. Its Operating Income for the months ended in Mar. 2025 was $17 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was $274 Mil.

Select Water Solutions's Interest Coverage for the quarter that ended in Mar. 2025 is

Interest Coverage=-1*Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*17.413/-4.876
=3.57

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

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

Select Water Solutions's Debt to Revenue Ratio for the quarter that ended in Mar. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(16.304 + 273.84) / 1497.536
=0.19

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.

Select Water Solutions has a Z-score of 1.97, indicating it is in Grey Zones. This implies that Select Water Solutions 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 1.97 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.


Select Water Solutions  (NYSE:WTTR) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Select Water Solutions has the Financial Strength Rank of 6.


Select Water Solutions Financial Strength Related Terms

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


Select Water Solutions Business Description

Traded in Other Exchanges
Address
1820 North I-35, Gainesville, TX, USA, 76240
Select Water Solutions Inc provides sustainable water and chemical solutions to the energy industry. These solutions are supported by the company's critical water infrastructure assets, chemical manufacturing, and water treatment and recycling capabilities. Its reportable segments are Water Services, Water Infrastructure and Chemical Technologies. It generates the majority of its revenue from Water Services segment.
Executives
John Schmitz director, officer: Chairman & CEO 920 MEMORIAL CITY WAY, SUITE 800, HOUSTON TX 77024
Michael Skarke officer: Exec. VP, Water Solutions 1820 NORTH I-35, P.O. BOX 1715, GAINESVILLE TX 76241
Brian Szymanski officer: Chief Accounting Officer & VP 1820 I-35 FRONTAGE ROAD, GAINESVILLE TX 76240
Nick L Swyka officer: CFO & Senior VP 515 POST OAK BLVD., STE. 200, HOUSTON TX 77027
Christopher Kile George officer: See Remarks 5660 WICKERSHAM LN, HOUSTON TX 77056
Troy W Thacker director C/O FOX PAINE & CO, 950 TOWER LANE, FOSTER CITY CA 94404
Christina M Ibrahim officer: SVP, GC and CCO 2000 ST. JAMES PLACE, HOUSTON TX 77056
Robin H Fielder director 1201 LAKE ROBBINS DRIVE, THE WOODLANDS TX 77380
Luis M Fernandez-moreno director ASHLAND INC., 8145 BLAZER DRIVE, WILMINGTON DE 19808
Suzanne Colbert officer: Chief Technology Officer 1233 WEST LOOP SOUTH, SUITE 1400, HOUSTON TX 77027
Gayle Burleson director ONE CONCHO CENTER, 600 WEST ILLINOIS AVENUE, MIDLAND TX 79701
Scf Partners, Inc. 10 percent owner, other: Member of Group 600 TRAVIS STE 6600, HOUSTON TX 77002
Scf-vii(a), L.p. 10 percent owner, other: Member of Group 600 TRAVIS ST., STE. 6600, HOUSTON TX 77002
Scf-vii(a), G.p., Limited Partnership 10 percent owner, other: Member of Group 600 TRAVIS, SUITE 6600, HOUSTON TX 77002
Holli C. Ladhani director, officer: President and CEO 2800 POST OAK BLVD., SUITE 4500, HOUSTON TX 77056