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.
MarketAxess Holdings's Interest Coverage for the quarter that ended in Dec. 2024 was 251.50.
MarketAxess Holdings's debt to revenue ratio for the quarter that ended in Dec. 2024 was 0.09.
As of today, MarketAxess Holdings's Altman Z-Score is 15.06.
Competitive Comparison of MarketAxess Holdings's Financial Strength
For the Capital Markets subindustry, MarketAxess Holdings'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.
MarketAxess Holdings's Financial Strength Distribution in the Capital Markets Industry
For the Capital Markets industry and Financial Services sector, MarketAxess Holdings's Financial Strength distribution charts can be found below:
* The bar in red indicates where MarketAxess Holdings'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:
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. MarketAxess Holdings Inc has enough cash to cover all of its debt. Its financial situation is stable.
2. Debt to revenue ratio. The lower, the better.
MarketAxess Holdings's Debt to Revenue Ratio for the quarter that ended in Dec. 2024 is
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.
MarketAxess Holdings has a Z-score of 15.06, indicating it is in Safe Zones. This implies the Z-Score is strong.
Good Sign:
Altman Z-score of 15.06 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.
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.
MarketAxess Holdings has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.
MarketAxess Holdings Financial Strength Related Terms
Thank you for viewing the detailed overview of MarketAxess Holdings's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
Founded in 2000, MarketAxess is a leading electronic fixed-income trading platform that connects broker/dealers and institutional investors. The company is primarily focused on credit based fixed income securities with its main trading products being US investment-grade and high-yield bonds, Eurobonds, and Emerging Market corporate debt. Recently the company has expanded more aggressively into Treasuries and municipal bonds with the acquisitions of LiquidityEdge and MuniBrokers in 2019 and 2021, respectively. The company also provides pre- and post-trade services with its acquisition of Regulatory Reporting Hub from Deutsche Börse Group in 2020 adding to its product offerings.
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