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Verra Mobility (Verra Mobility) Financial Strength : 4 (As of Mar. 2024)


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What is Verra Mobility Financial Strength?

Verra Mobility has the Financial Strength Rank of 4.

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.

Verra Mobility's Interest Coverage for the quarter that ended in Mar. 2024 was 2.77. Verra Mobility's debt to revenue ratio for the quarter that ended in Mar. 2024 was 1.28. As of today, Verra Mobility's Altman Z-Score is 2.99.


Competitive Comparison of Verra Mobility's Financial Strength

For the Infrastructure Operations subindustry, Verra Mobility'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.


Verra Mobility's Financial Strength Distribution in the Construction Industry

For the Construction industry and Industrials sector, Verra Mobility's Financial Strength distribution charts can be found below:

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



Verra Mobility 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:

Verra Mobility's Interest Expense for the months ended in Mar. 2024 was $-19.6 Mil. Its Operating Income for the months ended in Mar. 2024 was $54.4 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $1,065.4 Mil.

Verra Mobility's Interest Coverage for the quarter that ended in Mar. 2024 is

Interest Coverage=-1*Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*54.353/-19.635
=2.77

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

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

Verra Mobility's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(6.665 + 1065.402) / 838.92
=1.28

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.

Verra Mobility has a Z-score of 2.99, indicating it is in Grey Zones. This implies that Verra Mobility 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 2.99 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.


Verra Mobility  (NAS:VRRM) 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.

Verra Mobility has the Financial Strength Rank of 4.


Verra Mobility Financial Strength Related Terms

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


Verra Mobility (Verra Mobility) Business Description

Traded in Other Exchanges
Address
1150 North Alma School Road, Mesa, AZ, USA, 85201
Verra Mobility Corp provides smart transportation solutions. The company develops and uses technology and data intelligence to help make transportation safer and easier. It operates in three segments namely Commercial Services, Government Solutions, and Parking Solutions. It generates maximum revenue from the Commercial Services segment. The commercial Services segment delivers tolling and violation management services to rental car companies, commercial fleet vehicle owners, and violation issuing authorities.
Executives
Craig C Conti officer: EVP 1 S. WACKER DR., SUITE 1000, CHICAGO IL 60606
Steve Lalla officer: EVP Commercial Services C/O VERTIV HOLDINGS CO, 1050 DEARBORN DRIVE, COLUMBUS OH 43085
David Martin Roberts director, officer: President and CEO 1150 N. ALMA SCHOOL ROAD, MESA AZ 85201
Jonathan Keyser other: Chief Legal Officer 1150 N. ALMA SCHOOL ROAD, MESA AZ 85201
Jonathan Baldwin officer: EVP-Government Solutions 1150 N. ALMA SCHOOL ROAD, MESA AZ 85201
Sarah E Farrell director 572 RUGER STREET, SUITE B, SAN FRANCISCO CA 94129
Platinum Equity Llc director, 10 percent owner 360 NORTH CRESCENT DRIVE, BEVERLY HILLS CA 90210
Blake Norman P Iii officer: Pres. T2 Systems 1150 N. ALMA SCHOOL ROAD, MESA AZ 85201
Patricia Chiodo officer: Chief Financial Officer 5227 EAST GLORIA LANE, CAVE CREEK AZ 85331
Rebecca Collins officer: General Counsel 1150 N. ALMA SCHOOL ROAD, MESA AZ 85201
Mark J. Talbot officer: EVP Government Solutions 1150 NORTH ALMA SCHOOL ROAD, MESA AZ 85201
Michael P Huerta director 1800 M STREET NW SUITE 800, WASHINGTON DC 20036
Patrick J Byrne director 395 PAGE MILL ROAD, MS A3-18, PALO ALTO CA 94306
Garrett Fristoe Miller officer: Executive Vice President 1150 N. ALMA SCHOOL ROAD, MESA AZ 85201
Vincent Brigidi officer: Exec. VP 1150 N. ALMA SCHOOL ROAD, MESA AZ 85201