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VLTO (Veralto) Financial Strength : 6 (As of Mar. 2025)


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What is Veralto Financial Strength?

Veralto has the Financial Strength Rank of 6.

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.

Veralto's Interest Coverage for the quarter that ended in Mar. 2025 was 11.93. Veralto's debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.49. As of today, Veralto's Altman Z-Score is 5.41.


Competitive Comparison of Veralto's Financial Strength

For the Pollution & Treatment Controls subindustry, Veralto'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.


Veralto's Financial Strength Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Veralto's Financial Strength distribution charts can be found below:

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


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Veralto 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:

Veralto's Interest Expense for the months ended in Mar. 2025 was $-27 Mil. Its Operating Income for the months ended in Mar. 2025 was $322 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was $2,630 Mil.

Veralto'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*322/-27
=11.93

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

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

Veralto'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
=(0 + 2630) / 5328
=0.49

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.

Veralto has a Z-score of 5.41, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 5.41 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.


Veralto  (NYSE:VLTO) 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.

Veralto has the Financial Strength Rank of 6.


Veralto Financial Strength Related Terms

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


Veralto Business Description

Traded in Other Exchanges
Address
225 Wyman Street, Suite 250, Waltham, MA, USA, 02451
Veralto Corp is a provider of essential technology solutions that safeguard many of the world's most vital resources. The company operates in two segments: Water Quality and Product Quality & Innovation. Through the WQ segment, it improves the quality and reliability of water through brands including Hach, Trojan Technologies, and ChemTreat. Through the PQI segment, the company promotes consumer trust in products and helps enable product innovation through brands including Videojet, Linx, Esko, X-Rite, and Pantone.
Executives
Lesley Beneteau officer: SVP, Human Resources C/O VERALTO CORPORATION, 225 WYMAN STREET, SUITE 250, WALTHAM MA 02451
Mattias Bystrom officer: SVP-Prod. Quality & Innovation C/O VERALTO CORPORATION, 225 WYMAN STREET, SUITE 250, WALTHAM MA 02451
Surekha Trivedi officer: SVP, Strategy & Sustainability C/O VERALTO CORPORATION, 225 WYMAN STREET, SUITE 250, WALTHAM MA 02451
Melissa Aquino officer: SVP, Water Quality 3100 SANDERS ROAD, SUITE 301, NORTHBROOK IL 60062
Bernard M Skeete officer: VP, Chief Accounting Officer C/O TRINSEO S.A., 1000 CHESTERBROOK BLVD., SUITE 300, BERWYN PA 19312
Jennifer Honeycutt director, officer: President and CEO 2200 PENNSYLVANIA AVENUE, SUITE 800W, WASHINGTON DC 20037
Heath A Mitts director 1925 WEST FIELD COURT, SUITE 200, LAKE FOREST IL 60045
Sameer Ralhan officer: SVP, Chief Financial Officer C/O THE CHEMOURS COMPANY, 1007 MARKET STREET, WILMINGTON DE 19899
Cindy L. Wallis-lage director C/O COMFORT SYSTEMS USA, INC., 675 BERING DRIVE, SUITE 400, HOUSTON TX 77057
Sylvia Ann Stein officer: SVP, General Counsel 1500 DEKOVEN AVE., RACINE WI 53403
Shyam Kambeyanda director 2711 CENTERVILLE ROAD, SUITE 400, WILMINGTON DE 19808
Thomas L Williams director 6035 PARKLAND BOULEVARD, CLEVELAND OH 44124
Francoise Colpron director SEALED AIR CORPORATION, 2415 CASCADE POINTE BOUVELVARD, CHARLOTTE NC 28208
William King director 2200 PENNSYLVANIA AVENUE, NW, SUITE 800W, WASHINGTON DC 20037
Walter G Lohr director DANAHER CORP, 2099 PENNSYLVANIA AVE NW 12TH FL, WASHINGTON DC 20006