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Weyerhaeuser Co (Weyerhaeuser Co) Financial Strength : 6 (As of Dec. 2023)


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What is Weyerhaeuser Co Financial Strength?

Weyerhaeuser Co has the Financial Strength Rank of 6.

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.

Weyerhaeuser Co's Interest Coverage for the quarter that ended in Dec. 2023 was 3.17. Weyerhaeuser Co's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.72. As of today, Weyerhaeuser Co's Altman Z-Score is 3.00.


Competitive Comparison of Weyerhaeuser Co's Financial Strength

For the REIT - Specialty subindustry, Weyerhaeuser Co'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.


Weyerhaeuser Co's Financial Strength Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Weyerhaeuser Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Weyerhaeuser Co's Financial Strength falls into.



Weyerhaeuser Co 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:

Weyerhaeuser Co's Interest Expense for the months ended in Dec. 2023 was $-72 Mil. Its Operating Income for the months ended in Dec. 2023 was $228 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $5,069 Mil.

Weyerhaeuser Co'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*228/-72
=3.17

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

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

Weyerhaeuser Co'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
=(19 + 5069) / 7096
=0.72

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.

Weyerhaeuser Co has a Z-score of 3.00, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3 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.


Weyerhaeuser Co  (NYSE:WY) 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.

Weyerhaeuser Co has the Financial Strength Rank of 6.


Weyerhaeuser Co Financial Strength Related Terms

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


Weyerhaeuser Co (Weyerhaeuser Co) Business Description

Traded in Other Exchanges
Address
220 Occidental Avenue South, Seattle, WA, USA, 98104-7800
Weyerhaeuser ranks among the world's largest forest product companies. Following the 2016 sale of its pulp business to International Paper, Weyerhaeuser operates three business segments: timberlands, wood products, and real estate. Weyerhaeuser is structured as a real estate investment trust and is not required to pay federal income taxes on earnings generated by timber harvest activities. Earnings from its wood products segment are subject to federal income tax. Weyerhaeuser acquired fellow timber REIT Plum Creek in 2016.
Executives
David M Wold officer: VP & Chief Accounting Officer C/O WEYERHAEUSER COMPANY, 220 OCCIDENTAL AVENUE SOUTH, SEATTLE WA 98104
Keith O'rear officer: Senior Vice President C/O WEYERHAEUSER COMPANY, 220 OCCIDENTAL AVENUE SOUTH, SEATTLE WA 98104
Denise M Merle officer: Senior Vice President C/O WEYERHAEUSER COMPANY, 220 OCCIDENTAL AVENUE SOUTH, SEATTLE WA 98104
Devin W Stockfish director, officer: President and CEO C/O WEYERHAEUSER COMPANY, 220 OCCIDENTAL AVENUE SOUTH, SEATTLE WA 98104
James Calvin O'rourke director C/O THE MOSAIC COMPANY, 101 EAST KENNEDY BLVD., SUITE 2500, TAMPA FL 33602
Albert Monaco director #3000, 425 - 1ST STREET SW, CALGARY A0 T2P 3L8
Travis A Keatley officer: Senior Vice President 220 OCCIDENTAL AVE SOUTH, SEATTLE WA 98104
Adrian M Blocker officer: Senior Vice President C/O WEYERHAEUSER COMPANY, 220 OCCIDENTAL AVENUE SOUTH, SEATTLE WA 98104
Nancy S. Loewe officer: Senior Vice President and CFO 351 PHELPS DRIVE, IRVING TX 75038
Russell S Hagen officer: Senior Vice President and CFO C/O WEYERHAEUSER COMPANY, 220 OCCIDENTAL AVENUE SOUTH, SEATTLE WA 98104
Deidra C Merriwether director 100 GRAINGER PARKWAY, LAKE FOREST IL 60045
Nicole Weyerhaeuser Piasecki director 2000 WELLS FARGO PLACE, 30 EAST 7TH STREET, SAINT PAUL MN 55101-4930
James A Kilberg officer: Senior Vice President C/O WEYERHAEUSER COMPANY, 220 OCCIDENTAL AVENUE SOUTH, SEATTLE WA 98104
Marc F Racicot director 1411 E. MISSION AVENUE, SPOKANE WA 99202
Lawrence A Selzer director C/O WEYERHAEUSER COMPANY, 220 OCCIDENTAL AVENUE SOUTH, SEATTLE WA 98104

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