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Blend Labs (NYSE:BLND) Financial Strength

: 4 (As of Sep. 2022)
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Blend Labs has the Financial Strength Rank of 4.

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.

Blend Labs did not have earnings to cover the interest expense. Blend Labs's debt to revenue ratio for the quarter that ended in Sep. 2022 was 1.05. As of today, Blend Labs's Altman Z-Score is -5.73.


Blend Labs (NYSE:BLND) Financial Strength Competitive Comparison

For the Software - Application subindustry, Blend Labs'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.

   

Blend Labs (NYSE:BLND) Financial Strength Distribution

For the Software industry and Technology sector, Blend Labs's Financial Strength distribution charts can be found below:

* The bar in red indicates where Blend Labs's Financial Strength falls into.



Blend Labs 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:

Blend Labs's Interest Expense for the months ended in Sep. 2022 was $-6.2 Mil. Its Operating Income for the months ended in Sep. 2022 was $-66.1 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2022 was $228.0 Mil.

Blend Labs's Interest Coverage for the quarter that ended in Sep. 2022 is

Blend Labs 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.

Blend Labs's Debt to Revenue Ratio for the quarter that ended in Sep. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(4.663 + 228.045) / 221.412
=1.05

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.

Blend Labs has a Z-score of -5.73, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of -5.73 is in distress zone. This implies bankruptcy 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.


Blend Labs  (NYSE:BLND) 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.

Blend Labs has the Financial Strength Rank of 4.


Blend Labs Financial Strength Related Terms

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


Blend Labs (NYSE:BLND) Business Description

Blend Labs logo
Traded in Other Exchanges
N/A
Address
415 Kearny Street, San Francisco, CA, USA, 94108
Blend Labs Inc is a cloud based platform. It supports and simplifies applications for mortgages, consumer loans, and deposit accounts.
Executives
Burnham Ciara director 3110 MAIN STREET SUITE 400 SANTA MONICA CA 90405
Mayopoulos Timothy J director, officer: President C/O FANNIE MAE 1100 15TH STREET, NW WASHINGTON DC 20005
Chen Gerald C. director 415 KEARNY STREET SAN FRANCISCO CA 94108
Sumner Crystal officer: Head of Legal, Compliance,Risk 415 KEARNY STREET SAN FRANCISCO CA 94108
Ghamsari Nima director, officer: Chief Executive Officer 415 KEARNY STREET SAN FRANCISCO CA 94108
Greenberg Marc S. officer: Head of Finance 415 KEARNY STREET SAN FRANCISCO CA 94108
Chan Jonathan Y. officer: Principal Accounting Officer 415 KEARNY STREET SAN FRANCISCO CA 94108
Collard Erin James director 415 KEARNY STREET SAN FRANCISCO CA 94108
Ossa Investments Pte. Ltd. 10 percent owner 60B ORCHARD ROAD #06-18 TOWER 2 THE [email protected] SINGAPORE U0 238891
Hotham Investments Pte. Ltd. 10 percent owner 60B ORCHARD ROAD #06-18 TOWER 2 THE [email protected] SINGAPORE U0 238891
Temasek Holdings (private) Ltd 10 percent owner 60B ORCHARD ROAD #06-18 TOWER 2 THE [email protected] SINGAPORE U0 238891
Eggers Barry 10 percent owner 2200 SAND HILL ROAD MENLO PARK CA 94025
Nieh Peter 10 percent owner 2200 SAND HILL ROAD MENLO PARK CA 94025
Mhatre Ravi 10 percent owner 2200 SAND HILL ROAD MENLO PARK CA 94025
Fullerton Management Pte Ltd 10 percent owner 60B ORCHARD ROAD #06-18 TOWER 2 THE [email protected] SINGAPORE U0 238891

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