Avalara has the Financial Strength Rank of 5.
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.
Avalara did not have earnings to cover the interest expense.
Avalara's debt to revenue ratio for the quarter that ended in Jun. 2022 was 1.22.
As of today, Avalara's Altman Z-Score is 0.00.
Competitive Comparison
For the Software - Application subindustry, Avalara'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.
Avalara Financial Strength Distribution
For the Software industry and Technology sector, Avalara's Financial Strength distribution charts can be found below:
* The bar in red indicates where Avalara's Financial Strength falls in comparison to its industry or sector. The grey bar indicates the Financial Strength's extreme value range as defined by GuruFocus.
Avalara 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:
Avalara's Interest Expense for the
months ended in Jun. 2022 was $-1.5 Mil. Its Operating Income for the
months ended in Jun. 2022 was $-56.0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $1,006.6 Mil.
Avalara's Interest Coverage for the quarter that ended in Jun. 2022 is
| Avalara did not have earnings to cover the interest expense. |
The higher the ratio, the stronger the company's financial strength is.
2. Debt to revenue ratio. The lower, the better.
Avalara's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is
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.
Avalara has a Z-score of 0.00, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
* 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.
Avalara (NYSE:AVLR) Business Description
Traded in Other Exchanges
N/A
Address
255 South King Street, Suite 1800, Seattle, WA, USA, 98104
Avalara Inc provides compliance solutions. It provides software solutions that help businesses of all types and sizes comply with tax requirements for transactions worldwide. The company offers a broad and growing suite of compliance solutions for transaction taxes, such as sales and use tax, VAT, fuel excise tax, beverage alcohol, cross-border taxes, lodging tax, and communications tax. These solutions enable customers to automate the process of determining taxability, identifying applicable tax rates, determining and collecting taxes, preparing and filing returns, remitting taxes, maintaining tax records, and managing compliance documents. It generates revenue in the form of subscriptions and professional services.
Executives
| Marcela Martin |
director |
C/O SQUARESPACE, INC., 225 VARICK STREET, 12TH FLOOR, NEW YORK NY 10014 |
| Bruce T Crawford |
director |
255 SOUTH KING ST., SUITE 1800, SEATTLE WA 98104 |
| Srinivas Tallapragada |
director |
THE LANDMARK AT ONE MARKET STREET, #300, SAN FRANCISCO CA 94105 |
| Ross Tennenbaum |
officer: See Remarks |
255 S KING ST, STE 1800, SEATTLE WA 98104 |
| Brian Sharples |
director |
1250 CAPITAL OF TX HWY, BLDG 2, PLAZA 1, AUSTIN TX 78746 |
| Wp Avlr Holdco Llc |
10 percent owner |
C/O WARBURG PINCUS LLC, 450 LEXINGTON AVENUE, NEW YORK NY 10017 |
| Amit Mathradas |
officer: See Remarks |
255 S KING ST, STE 1800, SEATTLE WA 98104 |
| Kathleen Zwickert |
director |
255 S KING ST, STE 1800, SEATTLE WA 98104 |
| William Ingram |
officer: See Remarks |
C/O LEAP WIRELESS INTERNATIONAL, INC., 5887 COPLEY DRIVE, SAN DIEGO CA 92111 |
| Dooren Pascal Van |
officer: See Remarks |
255 SOUTH KING ST., SUITE 1800, SEATTLE WA 98104 |
| Rajeev Singh |
director |
6222 185TH AVENUE NE, REDMOND WA 98052 |
| Marion R Foote |
director |
C/O KINETA, INC., 219 TERRY AVE. N., SUITE 300, SEATTLE WA 98109 |
| Chelsea R. Stoner |
director |
C/O AVALARA, INC., 255 SOUTH KING ST., SUITE 1800, SEATTLE WA 98104 |
| Jared R. Vogt |
director |
C/O AVALARA, INC., 255 SOUTH KING ST., SUITE 1800, SEATTLE WA 98104 |
| Daniel E. Manning |
officer: Chief Accounting Officer |
255 SOUTH KING ST., SUITE 1800, SEATTLE WA 98104 |
Avalara (NYSE:AVLR) Headlines
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