Williams (NYSE:WMB) Financial Strength

: 3 (As of Dec. 2022)

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Williams 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:

Williams Companies 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.

Williams's Interest Coverage for the quarter that ended in Dec. 2022 was 3.71. Williams's debt to revenue ratio for the quarter that ended in Dec. 2022 was 1.96. As of today, Williams's Altman Z-Score is 0.67.

Competitive Comparison

For the Oil & Gas Midstream subindustry, Williams'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.

Annual Data Quarterly Data

Williams Financial Strength Distribution

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

* The bar in red indicates where Williams's Financial Strength falls in comparison to its industry or sector. The grey bar indicates the Financial Strength's extreme value range as defined by GuruFocus.

Williams 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:

Williams's Interest Expense for the months ended in Dec. 2022 was $-289 Mil. Its Operating Income for the months ended in Dec. 2022 was $1,072 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2022 was $21,927 Mil.

Williams's Interest Coverage for the quarter that ended in Dec. 2022 is

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2022 )	/	Interest Expense (Q: Dec. 2022 )
	=	-1	*	1072	/	-289
	=	3.71

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. Williams Companies Inc interest coverage is 2.63, which is low.

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

Williams's Debt to Revenue Ratio for the quarter that ended in Dec. 2022 is

Debt to Revenue Ratio	=	Total Debt (Q: Dec. 2022 )			/	Revenue
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Revenue
	=	(1002	+	21927)	/	11720
	=	1.96

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.

Williams has a Z-score of 0.67, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.67 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.

Williams (NYSE:WMB) 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.

Williams 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.

Williams Financial Strength Related Terms

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Williams (NYSE:WMB) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Williams Companies Inc (NYSE:WMB) » Definitions » Financial Strength

Comparable Companies

Traded in Other Exchanges

WMB:Mexico WMB:Germany WMB:Austria

Address

One Williams Center, PO Box 2400, Tulsa, OK, USA, 74172

Website

https://www.williams.com

Williams is a midstream energy company that owns and operates the large Transco and Northwest pipeline systems and associated natural gas gathering, processing, and storage assets. In August 2018, the firm acquired the remaining 26% ownership of its limited partner, Williams Partners.

Executives

Larry C Larsen	officer: Senior Vice President	ONE WILLIAMS CENTER, TULSA OK 74172
Richard E Muncrief	director	333 W. SHERIDAN AVE, OKLAHOMA CITY OK 73102
Jesse J Tyson	director	ONE WILLIAMS CENTER, TULSA OK 74172
Mary A. Hausman	officer: VP Chief Accounting Officer	ONE WILLIAMS CENTER, TULSA OK 74012
Stacey H Dore	director	1807 ROSS AVE, 4TH FLOOR, DALLAS TX 75201
Rose M Robeson	director	370 17TH STREET, SUITE 2775, DENVER CO 80202
Chad A. Teply	officer: SVP Project Execution	ONE WILLIAMS CENTER, TULSA OK 74172
John Dean Porter	officer: VP, Controller & CAO	ONE WILLIAMS CENTER, TULSA OK 74172
Scott A. Hallam	officer: SVP Atlantic - Gulf	2800 POST OAK BLVD., HOUSTON TX 77056
Debbie L. Cowan	officer: SVP & Chief HR Officer	ONE WILLIAMS CENTER, TULSA OK 74172
Vicki L Fuller	director	ONE WILLIAMS CENTER, TULSA OK 74172
Nancy Buese	director	1515 ARAPAHOE STREET, DENVER CO 80202-2126
John E Poarch	officer: SVP - Engineering Services	ONE WILLIAMS CENTER, TULSA OK 74172
John D Chandler	officer: Sr. Vice President & CFO	ONE WILLIAMS CENTER, MD 4700, TULSA OK 74172
Chad J. Zamarin	officer: Senior Vice President - CSD	ONE WILLIAMS CENTER, TULSA OK 74172