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Zip Co (ASX:ZIP) Quality Rank


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What is Zip Co Quality Rank?

The Quality Rank measures the business quality of a company relative to other companies. It is ranked based on the strength of the balance sheet, as well as the profitability and growth of the business. The ranked companies are split in equal numbers and then ranked from 1 to 10, with 10 being the highest.

The rank of balance sheet (30%)

The rank of balance sheet is done through the ranking of:
  • Interest coverage
  • Zscore
  • Debt to revenue
  • Equity to asset
  • Cash to debt

The rank of Profitability (70%)

The ranking of Profitability is done by ranking:
  • Operating margin mean rank (10-year mean average profit margine)
  • Operating margin growth rank
  • Fscore
  • Predictability rank
  • Revenue growth rank (5 year), when the growth is higher than 25%, set it as 25%
  • Num of year profit (number of years that is profitable within the last 10 years)
  • ROIC median (10-year median of ROIC)

Zip Co Quality Rank Related Terms

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Zip Co (ASX:ZIP) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Zip Co Ltd (ASX:ZIP) » Definitions » Quality Rank
Comparable Companies
ASX:PPM ASX:OBL ASX:SVR ASX:CCP ASX:HUM ASX:FSA ASX:EPY ASX:PLT ASX:HMY ASX:PGL V MA AXP PYPL BOM:500034 COF TSE:8591 DFS XPAR:EDEN NSE:CHOLAFIN
Traded in Other Exchanges
ZIZTF:USA
Address
126 Phillip Street, Level 5, Sydney, NSW, AUS, 2000
Website
https://www.zipmoneylimited.com.au
Zip is a diversified finance provider, offering consumer financing via a line of credit (via Zip Pay and Zip Money) and instalment-based finance (via QuadPay, Spotii, Twisto, and PayFlex); as well as lending to small to midsize enterprises (via Zip Business). Zip's fortunes are largely tied to the buy now, pay later, or BNPL, industry. Most of its products—Zip Pay, QuadPay (Zip U.S.), and PayFlex—do not charge interest based on outstanding balances. Around 60%-70% of Zip Pay's/Zip Money's revenue is derived from customers, mainly via account fees and interest. Meanwhile, its instalment businesses primarily generate revenue by receiving a margin from merchants, which compensates it for accepting all nonpayment risk and for encouraging consumers to transact more frequently.