What is NorthWestern Energy Group Financial Strength?
NorthWestern Energy 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.
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.
NorthWestern Energy Group's Interest Coverage for the quarter that ended in Mar. 2024 was 3.30.
NorthWestern Energy Group's debt to revenue ratio for the quarter that ended in Mar. 2024 was 1.46.
As of today, NorthWestern Energy Group's Altman Z-Score is 0.87.
Competitive Comparison of NorthWestern Energy Group's Financial Strength
For the Utilities - Regulated Electric subindustry, NorthWestern Energy 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.
NorthWestern Energy Group's Financial Strength Distribution in the Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, NorthWestern Energy Group's Financial Strength distribution charts can be found below:
* The bar in red indicates where NorthWestern Energy Group's Financial Strength falls into.
NorthWestern Energy 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.
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:
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.
NorthWestern Energy Group has a Z-score of 0.87, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 0.87 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.
NorthWestern Energy Group (FRA:NWZA) 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.
NorthWestern Energy 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.
NorthWestern Energy Group Financial Strength Related Terms
Thank you for viewing the detailed overview of NorthWestern Energy Group's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
NorthWestern Energy Group (FRA:NWZA) Business Description
NorthWestern Energy Group Inc provides electricity and natural gas services in the Upper Midwest and Northwest of the U.S. in the states of Montana, South Dakota, Nebraska, and Yellowstone National Park. The company's primary segments include Electric utility operations, which include the generation, purchase, transmission, and distribution of electricity, and Natural Gas utility operations, which include the production, purchase, transmission, storage, and distribution of natural gas. The company uses thermal, wind, hydro, or renewable energy in varying quantities, depending on the location of the facilities, to generate power. The company derives the majority of retail electric utility revenue from commercial and residential sales.
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