Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
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.
Carvana Co's Interest Coverage for the quarter that ended in Jun. 2026 was 6.73.
Carvana Co's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.19.
As of today, Carvana Co's Altman Z-Score is 7.31.
Carvana Co (XSWX:CVNA) 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.
Carvana Co has the Financial Strength Rank of 7.
Carvana Co Financial Strength Related Terms
XSWX:CVNA vs PAG, KMX, ALTB: Financial Strength Comparison
For the Auto & Truck Dealerships subindustry, Carvana Co'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.
Carvana Co Financial Strength vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Carvana Co's Financial Strength distribution charts can be found below:
* The bar in red indicates where Carvana Co'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.
Carvana Co has a Z-score of 7.31, indicating it is in Safe Zones. This implies the Z-Score is strong.
Good Sign:
Altman Z-score of 7.31 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.
Carvana Co (XSWX:CVNA) has a Financial Strength of 7 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Carvana Co and its competitors. This is near median its historical median of 7.00. Over the past decade, Carvana Co's Financial Strength has ranged from 6.00 to 7.00.
Is Carvana Co's Financial Strength too high?
Carvana Co's current Financial Strength of 7 is near median its 10-year median of 7.00. Over the past 10 years, this metric has ranged from a low of 6.00 to a high of 7.00. Overall, Carvana Co has a GF Score™ of 73/100, reflecting its overall financial health beyond just this single metric.
How does Carvana Co's Financial Strength compare to PAG and KMX?
Carvana Co's Financial Strength of 7 can be compared against companies in the Vehicles & Parts industry. Historically, Carvana Co's own Financial Strength has ranged from 6.00 to 7.00 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 Vehicles & Parts company?
A good Financial Strength depends on the Vehicles & Parts 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 Carvana Co and its competitors. Carvana Co's current Financial Strength is 7, which is near median its own 10-year median of 7.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Carvana Co stock overvalued right now?
Carvana Co (XSWX:CVNA) has a current Financial Strength of 7. The stock's GF Value™ is CHF64.69, compared to a current price of CHF57.19 — trading 11.6% below its estimated fair value. The current Financial Strength is 7, which is near median its 10-year median of 7.00. Carvana Co's overall GF Score™ is 73/100 with 2 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 Carvana Co (XSWX:CVNA), the current Financial Strength is 7 as of Jun. 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 Carvana Co (XSWX:CVNA) Overvalued in 2026?
Based on GuruFocus' analysis, Carvana Co stock appears to be undervalued.
The current stock price of CHF57.19 is trading 11.6% below its estimated GF Value™ of CHF64.69.
Key valuation signals for XSWX:CVNA:
Financial Strength: 7 (near median its 10-year median of 7.00)
GF Value™: CHF64.69 vs. price of CHF57.19 (11.6% below fair value)
No single metric tells the full story. See the XSWX:CVNA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Carvana Co is an e-commerce platform for buying and selling used cars. The company derives revenue from used vehicle sales, wholesale vehicle sales and other sales and revenues. The other sales and revenues include sales of loans originated and sold in securitization transactions or to financing partners, commissions received on VSCs and sales of GAP waiver coverage. The foundation of the business is retail vehicle unit sales. This drives the majority of the revenue and allows the company to capture additional revenue streams associated with financing, VSCs, auto insurance and GAP waiver coverage, as well as trade-in vehicles.
73GF Score
Get the complete analysis for XSWX:CVNA
Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
XSWX:CVNA has been successfully added to your 
