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Auto Trader Group (Auto Trader Group) Financial Strength : 9 (As of Sep. 2023)


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What is Auto Trader Group Financial Strength?

Auto Trader Group has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Auto Trader Group PLC shows strong financial strength.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It 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.

Auto Trader Group's Interest Coverage for the quarter that ended in Sep. 2023 was 96.06. Auto Trader Group's debt to revenue ratio for the quarter that ended in Sep. 2023 was 0.11. As of today, Auto Trader Group's Altman Z-Score is 32.71.


Competitive Comparison of Auto Trader Group's Financial Strength

For the Internet Content & Information subindustry, Auto Trader Group'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.


Auto Trader Group's Financial Strength Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Auto Trader Group's Financial Strength distribution charts can be found below:

* The bar in red indicates where Auto Trader Group's Financial Strength falls into.



Auto Trader Group 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:

Auto Trader Group's Interest Expense for the months ended in Sep. 2023 was $-2.1 Mil. Its Operating Income for the months ended in Sep. 2023 was $202.1 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was $66.1 Mil.

Auto Trader Group's Interest Coverage for the quarter that ended in Sep. 2023 is

Interest Coverage=-1*Operating Income (Q: Sep. 2023 )/Interest Expense (Q: Sep. 2023 )
=-1*202.104/-2.104
=96.06

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

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

Auto Trader Group's Debt to Revenue Ratio for the quarter that ended in Sep. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(9.653 + 66.089) / 694.306
=0.11

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.

Auto Trader Group has a Z-score of 32.71, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 32.71 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.


Auto Trader Group  (OTCPK:ATDRY) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Auto Trader Group has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.


Auto Trader Group Financial Strength Related Terms

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


Auto Trader Group (Auto Trader Group) Business Description

Traded in Other Exchanges
Address
1 Tony Wilson Place, 4th Floor, Manchester, GBR, M15 4FN
Auto Trader Group PLC is a digital automotive marketplace based in the UK and Ireland, which provides trading channels for a range of vehicles such as cars, trucks, vans, bikes, and farm machinery, as well as relevant services such as car insurance, loans, valuations, and vehicle check services. The company generates revenue from three streams. It derives trade revenue from retailers and home traders advertising vehicles and using Auto Trader's products, which represent the majority of the group income. Consumer services revenue stems from private sellers placing advertisements and from the company's partners who provide services to consumers. Display advertising revenue is earned from manufacturers or their advertising agencies, which advertise their brand or services on the marketplace.

Auto Trader Group (Auto Trader Group) Headlines

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