Fluor Enterprises, Inc.
Supplier Financial Health Report
Overview
June 2024
USA
Incorporated Country
30,187
Number of Employees
A+
Credit Rating
1
Count of Investments
Five-Year Financial Trend Analysis for Fluor Enterprises, Inc.
CONSTANT
Credit Trend
-16.69%
Total Balance Sheet Growth Rate
-24.79%
Total Debt Growth Rate
Despite the revenue decrease, the company's cash position improved, increasing from $1.99B in 2014 to $2.44B in 2022, a 22.37% change. However, short-term investments decreased from $214.83M in 2018 to $185M in 2022, a 13.88% change. Total debt and liabilities also decreased, dropping from $2.25B in 2018 to $1.69B in 2022, a 24.79% change, and from $5.9B in 2018 to $4.83B in 2022, an 18.15% change, respectively.
Stockholders equity, however, showed a significant decrease, dropping from $2.98B in 2018 to $2B in 2022, a 33.03% change. Net income also decreased dramatically, dropping from $647.54M in 2014 to $145M in 2022, a 77.61% change. EBITDA and net operating cash flow also showed decreases, dropping from $319.12M in 2017 to $282M in 2022, an 11.63% change, and from $642.57M in 2014 to $31M in 2022, a 95.18% change, respectively.
Fluor Enterprises, Inc. has a credit rating of A+ and a credit score of 99, both of which are high and indicate strong financial health and low credit risk. The credit trend is constant. The company has had two funding rounds, raising a total of $2.3B, and one exit. The number of investments is one.
The company's financial health can be compared to industry standards by looking at the trends in the construction industry. According to recent reports, the construction industry has seen steady growth in revenue and profitability over the past few years. However, the COVID-19 pandemic has caused some disruptions, leading to decreases in revenue and profitability for many companies in the industry. Fluor Enterprises, Inc.'s revenue and profitability decreases may be attributed to these industry-wide trends, as well as company-specific factors.
In conclusion, Fluor Enterprises, Inc.'s financial health shows some positive and negative trends. The company's credit rating and score, as well as its cash position and decreasing debt and liabilities, are positive indicators. However, the significant decreases in revenue, profitability, and stockholders equity are negative indicators. The company's financial health can be improved by focusing on increasing revenue and profitability, while maintaining a strong cash position and reducing debt and liabilities.
Financial Health Risk Assessment for Fluor Enterprises, Inc.
LOW
Credit Risk
LOW
Bankruptcy Risk
MEDIUM
Financial Health Risk
The company's revenue dropped from $18.85B in 2018 to $13.74B in 2022, representing a 27.09% change. This decline was also reflected in the net income, which dropped from $647.54M in 2014 to $145M in 2022, a 77.61% change. Additionally, stockholders equity decreased from $2.98B in 2018 to $2B in 2022, a 33.03% change. These decreases, coupled with the 18.15% decrease in net operating cash flow from $642.57M in 2014 to $31M in 2022, suggest that the company may be facing operational challenges.
However, it is important to note that the construction industry has seen some disruptions due to the COVID-19 pandemic, which may have contributed to Fluor Enterprises, Inc.'s revenue and profitability decreases. Therefore, it is essential to consider industry trends when evaluating the company's financial health.
To improve its financial health, Fluor Enterprises, Inc. can focus on increasing revenue and profitability while maintaining a strong cash position and reducing debt and liabilities. It may also be beneficial for the company to closely monitor industry trends and adapt its business strategies accordingly to mitigate the impact of external factors on its financial performance.
Additionally, the company's current ratio of 1.57 indicates that it has more than enough current assets to cover its short-term liabilities, suggesting a good ability to meet its short-term obligations. The debt ratio of 0.25 shows a low reliance on debt financing, which is a positive sign for financial stability. However, the debt-to-equity ratio of 2.42 indicates that the company is using more debt than equity to finance its operations, which could be a concern for some investors.
The gross profit margin of 3% and net profit margin of 1% are relatively low, indicating that the company may be facing production inefficiencies or struggling to command high prices for its goods or services. The return on assets (ROA) and return on equity (ROE) ratios of 2% and 8%, respectively, suggest that the company is not generating significant earnings relative to its assets and equity.
The quick ratio of 1.16 is below the current ratio, indicating that the company may not have enough quick assets to cover its immediate liabilities. However, this ratio is still above the industry average, suggesting that Fluor Enterprises is still in a better position than many of its competitors. The asset turnover ratio of 1.98 indicates that the company is generating sales efficiently, which is a positive sign.
The Altman Z-Score of 3.79 is well above the safe zone of 3.0, indicating a low probability of bankruptcy within the next two years. This is a strong indicator of the company's financial health and stability.
In conclusion, Fluor Enterprises, Inc.'s financial health shows some positive and negative trends. While the company's credit rating and score, as well as its cash position and decreasing debt and liabilities, are positive indicators, the significant decreases in revenue, profitability, and stockholders equity are negative indicators. It is essential for the company to closely monitor its financial performance and take steps to address any weaknesses to ensure long-term financial stability.
List of UEIs for Fluor Enterprises, Inc.
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