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PWR (Quanta Services) Financial Strength : 7 (As of Mar. 2025)


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What is Quanta Services Financial Strength?

Quanta Services has the Financial Strength Rank of 7.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and 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.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Quanta Services's Interest Coverage for the quarter that ended in Mar. 2025 was 4.24. Quanta Services's debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.19. As of today, Quanta Services's Altman Z-Score is 4.94.


Competitive Comparison of Quanta Services's Financial Strength

For the Engineering & Construction subindustry, Quanta 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.


Quanta Services's Financial Strength Distribution in the Construction Industry

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

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


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Quanta 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:

Quanta Services's Interest Expense for the months ended in Mar. 2025 was $-54 Mil. Its Operating Income for the months ended in Mar. 2025 was $231 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was $4,581 Mil.

Quanta Services's Interest Coverage for the quarter that ended in Mar. 2025 is

Interest Coverage=-1*Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*230.509/-54.312
=4.24

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

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

Quanta Services's Debt to Revenue Ratio for the quarter that ended in Mar. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(166.543 + 4581.21) / 24933.336
=0.19

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.

Quanta Services has a Z-score of 4.94, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.94 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.


Quanta Services  (NYSE:PWR) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Quanta Services has the Financial Strength Rank of 7.


Quanta Services Financial Strength Related Terms

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


Quanta Services Business Description

Address
2727 North Loop West, Houston, TX, USA, 77008
Quanta Services is a leading provider of specialty contracting services, delivering comprehensive infrastructure solutions for the electric and gas utility, communications, pipeline, and energy industries in the United States, Canada, and Australia. Quanta reports its results under two segments: electric infrastructure and underground utility and infrastructure.
Executives
Austin Earl C. Jr. director, officer: President, CEO and COO QUANTA SERVICES, INC., 2727 NORTH LOOP WEST, HOUSTON TX 77008-1044
Ducey Gerald A Jr officer: Pres. - Strategic Operations 2727 NORTH LOOP WEST, HOUSTON TX 77008
James Redgie Probst officer: President - Electric Power 2727 NORTH LOOP WEST, HOUSTON TX 77008-1044
Donald Wayne officer: EVP and General Counsel 2727 NORTH LOOP WEST, HOUSTON TX 77008-1044
Margaret B Shannon director 5500 NORTHWEST CENTRAL DRIVE, HOUSTON TX 77092
Bernard Fried director QUANTA SERVICES, INC., 2727 NORTH LOOP WEST, HOUSTON TX 77008
Vincent D Foster director QUANTA SERVICES, INC., 2727 NORTH LOOP WEST, HOUSTON TX 77008
Derrick A Jensen officer: Chief Financial Officer QUANTA SERVICES, INC., 2800 POST OAK BLVD., SUITE 2600, HOUSTON TX 77056-6175
Raul Javier Valentin director ONE LIBERTY PLAZA, 7TH FLOOR, NEW YORK NY 10006
Dorothy Upperman officer: VP Tax 2727 NORTH LOOP WEST, HOUSTON TX 77008-1044
Worthing F Jackman director QUANTA SERVICES, INC., 2727 NORTH LOOP WEST, HOUSTON TX 77008
Robert Scott Rowe director 1333 WEST LOOP SOUTH, SUITE 1700, HOUSTON TX 77027
Paul Nobel officer: Chief Accounting Officer & VP C/O QUANTA SERVICES, INC., 2727 NORTH LOOP WEST, HOUSTON TX 77008-1044
John Michal Conaway director QUANTA SERVICES, INC., 2800 POST OAK BLVD., SUITE 2600, HOUSTON TX 77056-6175
Holli C. Ladhani director 2800 POST OAK BLVD., SUITE 4500, HOUSTON TX 77056