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GRPN (Groupon) Financial Strength : 4 (As of Mar. 2025)


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What is Groupon Financial Strength?

Groupon has the Financial Strength Rank of 4.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and 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.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Groupon's Interest Coverage for the quarter that ended in Mar. 2025 was 0.51. Groupon's debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.54. As of today, Groupon's Altman Z-Score is -1.28.


Competitive Comparison of Groupon's Financial Strength

For the Internet Content & Information subindustry, Groupon'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.


Groupon's Financial Strength Distribution in the Interactive Media Industry

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

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


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Groupon 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:

Groupon's Interest Expense for the months ended in Mar. 2025 was $-4.0 Mil. Its Operating Income for the months ended in Mar. 2025 was $2.0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was $196.2 Mil.

Groupon's Interest Coverage for the quarter that ended in Mar. 2025 is

Interest Coverage=-1*Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*2.021/-3.971
=0.51

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

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

Groupon's Debt to Revenue Ratio for the quarter that ended in Mar. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(56.494 + 196.247) / 468.748
=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.

Groupon has a Z-score of -1.28, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of -1.28 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.


Groupon  (NAS:GRPN) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Groupon has the Financial Strength Rank of 4.


Groupon Financial Strength Related Terms

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


Groupon Business Description

Traded in Other Exchanges
Address
35 West Wacker Drive, 25th Floor, Chicago, IL, USA, 60601
Groupon Inc acts as the middleman between consumers and merchants, offering products and services at discounts via its online store. It offers consumers daily deals from local merchants. The company's operations are organized into two segments: North America and International. The company generates the majority of its revenue from North America. The company generates revenue from transactions during which the company generates commissions by selling goods or services on behalf of third-party merchants. Revenue also includes commissions the company earn when customers make purchases with retailers using digital coupons accessed through its digital properties.
Executives
Jason Harinstein director C/O ARK GLOBAL ACQUISITION CORP., 4235 HILLSBORO PIKE, SUITE 300, NASHVILLE TN 37215
Robert J Bass director C/O GROUPON, INC., 600 WEST CHICAGO AVENUE, SUITE 620, CHICAGO IL 60654
Dusan Senkypl other: See Footnote 1 and Remarks JESTRABI 493, OSNICE, JESENICE 2N 252 42
Kyle Netzly officer: Interim CAO 600 W CHICAGO AVE, CHICAGO IL 60654
Jiri Ponrt officer: Chief Financial Officer 600 W CHICAGO AVE, CHICAGO IL 60654
Pale Fire Capital Sicav A.s. 10 percent owner ZATECKA 55/14, JOSEFOV, PRAGUE 2N 110 00
Jan Barta other: See Footnote 1 NA BATERIICH 104/35, BREVNOV, PRAGUE 2N 16200
Maple Rock Capital Partners Inc. 10 percent owner 21 ST. CLAIR AVENUE EAST, SUITE 1100, TORONTO A6 M4T 1L9
Xavier Majic 10 percent owner 21 ST. CLAIR AVENUE EAST, SUITE 1100, TORONTO A6 A6 M4T 1L9
Rpd Opportunity Fund Lp 10 percent owner 767 THIRD AVE, 35TH FLOOR, NEW YORK NY 10017
Rpd Fund Management Llc 10 percent owner 767 THIRD AVE, 35TH FLOOR, NEW YORK NY 10017
Ahmet H Okumus 10 percent owner C/O OKUMUS FUND MANAGEMENT LTD., 767 THIRD AVENUE, 35TH FLOOR, NEW YORK NY 10022
Pale Fire Capital Se other: See Footnote 1 and Remarks ZATECKA 55/14, JOSEFOV, PRAGUE 2N 110 00
Kerrie Dvorak officer: Interim CAO 600 W. CHICAGO AVENUE, SUITE 400, CHICAGO IL 60654
Deborah Wahl director 600 WEST CHICAGO AVENUE, SUITE 400, CHICAGO IL 60654