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Elastic NV (NYSE:ESTC) Financial Strength

: 4 (As of Jan. 2023)
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Elastic NV 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.

Elastic NV did not have earnings to cover the interest expense. Elastic NV's debt to revenue ratio for the quarter that ended in Jan. 2023 was 0.54. As of today, Elastic NV's Altman Z-Score is 3.09.


Competitive Comparison

For the Software - Application subindustry, Elastic NV'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.

   

Elastic NV Financial Strength Distribution

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

* The bar in red indicates where Elastic NV'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.



Elastic NV 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:

Elastic NV's Interest Expense for the months ended in Jan. 2023 was $-6 Mil. Its Operating Income for the months ended in Jan. 2023 was $-40 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2023 was $584 Mil.

Elastic NV's Interest Coverage for the quarter that ended in Jan. 2023 is

Elastic NV 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.

Elastic NV's Debt to Revenue Ratio for the quarter that ended in Jan. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Jan. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(12.839 + 584.008) / 1098.264
=0.54

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.

Elastic NV has a Z-score of 3.09, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.09 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.


Elastic NV  (NYSE:ESTC) 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.

Elastic NV has the Financial Strength Rank of 4.


Elastic NV Financial Strength Related Terms

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


Elastic NV (NYSE:ESTC) Business Description

Elastic NV logo
Traded in Other Exchanges
Address
800 West El Camino Real, Suite 350, Mountain View, CA, USA, 94040
Elastic is a software company based in Mountain View, California, focusing on search-adjacent products. Its search engine allows it to process both structured and unstructured data while gleaning insights from that data. The firm's primary focus is on enterprise search, observability, and security.
Executives
Ken Exner officer: Chief Product Officer C/O ELASTIC NV, 800 WEST EL CAMINO REAL, SUITE 350, MOUNTAIN VIEW CA 94040
Sohaib Abbasi director 100 EAST DAVIE STREET, RALEIGH NC 27601
Carolyn Herzog officer: Chief Legal Officer C/O ELASTIC N.V., 800 WEST EL CAMINO REAL, SUITE 350, MOUNTAIN VIEW CA 94040
Shelley B Leibowitz director C/O MORGAN STANLEY, 1585 BROADWAY, NEW YORK NY 10036
Ashutosh Kulkarni officer: Chief Product Officer 6220 AMERICA CENTER DRIVE, SAN JOSE CA 95002
Paul Andrew Appleby officer: President, Worldwide Field Ops C/O ELASTIC N.V., 800 WEST EL CAMINO REAL, SUITE 350, MOUNTAIN VIEW CA 94040
Alison Gleeson director C/O ELASTIC N.V., 800 WEST EL CAMINO REAL, SUITE 350, MOUNTAIN VIEW CA 94040
Caryn Marooney director C/O ZENDESK, INC., 989 MARKET STREET, SUITE 300, SAN FRANCISCO CA 94103
Benchmark Capital Management Co. Vii, L.l.c. 10 percent owner 2965 WOODSIDE ROAD, WOODSIDE CA 94062
Eric Vishria 10 percent owner 2965 WOODSIDE ROAD, WOODSIDE CA 94062
Janesh Moorjani officer: Chief Financial Officer C/O ELASTIC N.V., 800 WEST EL CAMINO REAL, SUITE 350, MOUNTAIN VIEW CA 94040
Steven Schuurman director, 10 percent owner C/O ELASTIC NV, 800 WEST EL CAMINO REAL SUITE 350, MOUNTAIN VIEW CA 94040
Kevin Kluge officer: SVP of Engineering C/O ELASTIC NV, 800 WEST EL CAMINO REAL SUITE 350, MOUNTAIN VIEW CA 94040
Bv Ixii 10 percent owner C/O ELASTIC NV, 800 WEST EL CAMINO REAL, MOUNTAIN VIEW CA 94040
Bv Cmxi 10 percent owner C/O ELASTIC NV, 800 WEST EL CAMINO REAL SUITE 350, MOUNTAIN VIEW CA 94040

Elastic NV (NYSE:ESTC) Headlines

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