GURUFOCUS.COM » STOCK LIST » Technology » Software » Fidelity National Information Services Inc (BSP:F1NI34) » Definitions » Financial Strength

Fidelity National Information Services (BSP:F1NI34) Financial Strength : 4 (As of Dec. 2023)


View and export this data going back to 2019. Start your Free Trial

What is Fidelity National Information Services Financial Strength?

Fidelity National Information Services has the Financial Strength Rank of 4.

Warning Sign:

Fidelity National Information Services 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.

Fidelity National Information Services's Interest Coverage for the quarter that ended in Dec. 2023 was 2.76. Fidelity National Information Services's debt to revenue ratio for the quarter that ended in Dec. 2023 was 1.93. As of today, Fidelity National Information Services's Altman Z-Score is -0.11.


Competitive Comparison of Fidelity National Information Services's Financial Strength

For the Information Technology Services subindustry, Fidelity National Information Services'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.


Fidelity National Information Services's Financial Strength Distribution in the Software Industry

For the Software industry and Technology sector, Fidelity National Information Services's Financial Strength distribution charts can be found below:

* The bar in red indicates where Fidelity National Information Services's Financial Strength falls into.



Fidelity National Information Services 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:

Fidelity National Information Services's Interest Expense for the months ended in Dec. 2023 was R$-774 Mil. Its Operating Income for the months ended in Dec. 2023 was R$2,136 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was R$64,423 Mil.

Fidelity National Information Services's Interest Coverage for the quarter that ended in Dec. 2023 is

Interest Coverage=-1*Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*2136.313/-774.168
=2.76

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. Fidelity National Information Services Inc interest coverage is 2.92, which is low.

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

Fidelity National Information Services's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(30344.461 + 64422.57) / 49193.992
=1.93

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.

Fidelity National Information Services has a Z-score of -0.11, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of -0.11 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.


Fidelity National Information Services  (BSP:F1NI34) 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.

Fidelity National Information Services has the Financial Strength Rank of 4.


Fidelity National Information Services Financial Strength Related Terms

Thank you for viewing the detailed overview of Fidelity National Information Services's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Fidelity National Information Services (BSP:F1NI34) Business Description

Traded in Other Exchanges
Address
347 Riverside Avenue, Jacksonville, FL, USA, 32202
Fidelity National Information Services' legacy operations provide core processing and ancillary services to banks, but its business has expanded over time. By acquiring Sungard in 2015, the company now provides record-keeping and other services to investment firms. With the acquisition of Worldpay in 2019, FIS now provides payment processing services for merchants and holds leading positions in the United States and United Kingdom. About a fourth of revenue is generated outside North America.

Fidelity National Information Services (BSP:F1NI34) Headlines

No Headlines