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Sleep Number has the Financial Strength Rank of 1. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
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.
Sleep Number did not have earnings to cover the interest expense.
Sleep Number's debt to revenue ratio for the quarter that ended in Mar. 2026 was 0.75.
As of today, Sleep Number's Altman Z-Score is -1.27.
Sleep Number (FRA:SL2) 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.
Sleep Number has the Financial Strength Rank of 1. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Sleep Number Financial Strength Related Terms
FRA:SL2 vs LBRA, NCLX, LUVU: Financial Strength Comparison
For the Furnishings, Fixtures & Appliances subindustry, Sleep Number'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.
Sleep Number Financial Strength vs Furnishings, Fixtures & Appliances Industry
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Sleep Number's Financial Strength distribution charts can be found below:
* The bar in red indicates where Sleep Number's Financial Strength falls into.
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:
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.
Sleep Number has a Z-score of -1.27, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of -1.27 is in distress zone. This implies bankruptcy possibility in the next two years.
* 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.
Sleep Number (FRA:SL2) has a Financial Strength of 1 as of Mar. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Sleep Number and its competitors. This is 80% below median its historical median of 5.00. Over the past decade, Sleep Number's Financial Strength has ranged from 1.00 to 9.00.
Is Sleep Number's Financial Strength too high?
Sleep Number's current Financial Strength of 1 is 80% below median its 10-year median of 5.00. Over the past 10 years, this metric has ranged from a low of 1.00 to a high of 9.00. Overall, Sleep Number has a GF Score™ of 52/100, reflecting its overall financial health beyond just this single metric.
How does Sleep Number's Financial Strength compare to LBRA and NCLX?
Sleep Number's Financial Strength of 1 can be compared against companies in the Furnishings, Fixtures & Appliances industry. Historically, Sleep Number's own Financial Strength has ranged from 1.00 to 9.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Furnishings, Fixtures & Appliances company?
A good Financial Strength depends on the Furnishings, Fixtures & Appliances industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Sleep Number and its competitors. Sleep Number's current Financial Strength is 1, which is 80% below median its own 10-year median of 5.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sleep Number stock overvalued right now?
Sleep Number (FRA:SL2) has a current Financial Strength of 1. The stock's GF Value™ is €55.88, compared to a current price of €0.13 — trading 99.8% below its estimated fair value. The current Financial Strength is 1, which is 80% below median its 10-year median of 5.00. Sleep Number's overall GF Score™ is 52/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Sleep Number (FRA:SL2), the current Financial Strength is 1 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Sleep Number (FRA:SL2) Overvalued in 2026?
Based on GuruFocus' analysis, Sleep Number stock appears to be undervalued.
The current stock price of €0.13 is trading 99.8% below its estimated GF Value™ of €55.88.
Key valuation signals for FRA:SL2:
Financial Strength: 1 (80% below median its 10-year median of 5.00)
GF Value™: €55.88 vs. price of €0.13 (99.8% below fair value)
No single metric tells the full story. See the FRA:SL2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sleep Number Corp is a designer, manufacturer, marketer, and retailer, which allows it to offer consumers high-quality, individualized sleep solutions and services. It also offers FlextFit adjustable bases, and Sleep Number pillows, sheets, and other bedding products. The company generates revenue by marketing its innovations directly to new and existing customers and selling products through its Stores, Online, Phone, Chat (Total Retail), and Other. It focuses on personalized sleep wellness, with mattresses designed to evolve with each sleeper to help them feel and perform well, featuring adjustable firmness, pressure-relieving support, and temperature-balancing comfort built into every mattress. Its products include mattresses, bundles, bedding, pillows, and furniture.
52GF Score
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Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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