GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Dana Inc (NYSE:DAN) » Definitions » Financial Strength

Dana (DAN) Financial Strength : 5 (As of Sep. 2024)


View and export this data going back to 2008. Start your Free Trial

What is Dana Financial Strength?

Dana has the Financial Strength Rank of 5.

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.

Dana's Interest Coverage for the quarter that ended in Sep. 2024 was 2.83. Dana's debt to revenue ratio for the quarter that ended in Sep. 2024 was 0.30. As of today, Dana's Altman Z-Score is 1.86.


Competitive Comparison of Dana's Financial Strength

For the Auto Parts subindustry, Dana'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.


Dana's Financial Strength Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Dana's Financial Strength distribution charts can be found below:

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



Dana 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:

Dana's Interest Expense for the months ended in Sep. 2024 was $-40 Mil. Its Operating Income for the months ended in Sep. 2024 was $113 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was $2,706 Mil.

Dana's Interest Coverage for the quarter that ended in Sep. 2024 is

Interest Coverage=-1*Operating Income (Q: Sep. 2024 )/Interest Expense (Q: Sep. 2024 )
=-1*113/-40
=2.83

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

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

Dana's Debt to Revenue Ratio for the quarter that ended in Sep. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(279 + 2706) / 9904
=0.30

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.

Dana has a Z-score of 1.86, indicating it is in Grey Zones. This implies that Dana 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 1.86 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.


Dana  (NYSE:DAN) 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.

Dana has the Financial Strength Rank of 5.


Dana Financial Strength Related Terms

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


Dana Business Description

Traded in Other Exchanges
Address
3939 Technology Drive, Maumee, OH, USA, 43537
Dana Inc is engaged in the designing and manufacturing of efficient propulsion and energy-management solutions that power vehicles and machines in all mobility markets across the globe. The company has four operating segments: Light Vehicles, Power Technologies, Commercial Vehicle, and Off-Highway. The Light Vehicles segment generates the majority portion of revenue by providing products to support light vehicle OEMs. Its products are designed for light trucks, SUVs, CUVs, vans, and passenger cars.
Executives
James D Kellett officer: VP & Chief Accounting Officer 3946 WRENS NEST BLVD, MAUMEE OH 43537
Jeroen Decleer officer: SVP & Pres Off-Highway Drive GEMENEWEIDEWEG-NOORD 18, BRUGGE C9 8310
Aziz Aghili officer: Pres Off-Hwy Technologies & AP 5706 KIRKRIDGE TRAIL, ROCHESTER HILLS MI 48306
James Kevin Kamsickas director, officer: President & CEO 44011 CYPRESS POINT DRIVE, NORTHVILLE MI 48168
Byron S Foster officer: Pres, Light Veh Drive Systems 30 ISABELLA ST., PITTSBURGH PA 15212
Brett Icahn director C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH, SUNNY ISLES FL 33160
Gaoxiang Hu director 16690 COLLINS AVE., SUITE PH-1, SUNNY ISLES BEACH FL 33160
Ernesto M Hernandez director C/O CONSTELLATION BRANDS, INC., 207 HIGH POINT DRIVE, BLDG. 100, VICTOR NY 14564
Timothy R Kraus officer: SVP & Chief Financial Officer 812, PILGRAM AVENUE, BIRMINGHAM MI 48009
Robert D Pyle officer: Pres, Light Vehicle Driveline 3939 TECHNOLOGY DRIVE, MAUMEE OH 43537
Jonathan Mark Collins officer: SVP & Chief Financial Officer 50196 VENICE COURT, NORTHVILLE MI 48168
Ryan Laskey officer: SVP - Commercial Veh Drive 9332 CRISTAL MARIE CT, TEMPERANCE MI 48182
Antonio Valencia officer: Pres. Power Technologies Group 3939 TECHNOLOGY DRIVE, MAUMEE OH 43537
Keith E Wandell director
Bridget E Karlin director 3 TALL TREE LANE, PLEASANTVILLE NY 10570