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Flutter Entertainment (LSE:FLTR) Financial Strength : 6 (As of Mar. 2025)


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What is Flutter Entertainment Financial Strength?

Flutter Entertainment 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.

Flutter Entertainment's Interest Coverage for the quarter that ended in Mar. 2025 was 2.12. Flutter Entertainment's debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.50. As of today, Flutter Entertainment's Altman Z-Score is 3.18.


Competitive Comparison of Flutter Entertainment's Financial Strength

For the Gambling subindustry, Flutter Entertainment'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.


Flutter Entertainment's Financial Strength Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Flutter Entertainment's Financial Strength distribution charts can be found below:

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


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Flutter Entertainment 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:

Flutter Entertainment's Interest Expense for the months ended in Mar. 2025 was £-81 Mil. Its Operating Income for the months ended in Mar. 2025 was £173 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was £5,574 Mil.

Flutter Entertainment'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*172.602/-81.27
=2.12

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

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

Flutter Entertainment'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
=(146.286 + 5574.348) / 11346.84
=0.50

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.

Flutter Entertainment has a Z-score of 3.18, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.18 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.


Flutter Entertainment  (LSE:FLTR) 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.

Flutter Entertainment has the Financial Strength Rank of 6.


Flutter Entertainment Financial Strength Related Terms

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


Flutter Entertainment Business Description

Address
300 Park Avenue South, New York, NY, USA, 10010
In 2016, Irish company Paddy Power merged with UK firm Betfair to form online gaming operator Flutter Entertainment. Today, Flutter has the top digital revenue share in the US, UK and Ireland, Australia, and many other countries. Some of its main brands are FanDuel in the US, Sky Betting & Gaming and Paddy Power in the UK and Ireland, Sportsbet (acquired by Paddy Power in 2009) in Australia, and Sisal in Italy. As of Dec. 31, 2024, the company offered products in over 100 countries and had 13.9 million average monthly users. In 2024, sports betting was 56% of revenue, online gaming 40%, and fantasy sports, horse racing, and other 4%.

Flutter Entertainment Headlines

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