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Activision Blizzard Financial Strength

: 8 (As of Mar. 2022)
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Activision Blizzard has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Activision Blizzard Inc 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.

Activision Blizzard's Interest Coverage for the quarter that ended in Mar. 2022 was 17.67. Activision Blizzard's debt to revenue ratio for the quarter that ended in Mar. 2022 was 0.51. As of today, Activision Blizzard's Altman Z-Score is 6.97.


Competitive Comparison

For the Electronic Gaming & Multimedia subindustry, Activision Blizzard'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.

   

Activision Blizzard Financial Strength Distribution

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

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



Activision Blizzard 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:

Activision Blizzard's Interest Expense for the months ended in Mar. 2022 was $-27 Mil. Its Operating Income for the months ended in Mar. 2022 was $477 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2022 was $3,608 Mil.

Activision Blizzard's Interest Coverage for the quarter that ended in Mar. 2022 is

Interest Coverage=-1*Operating Income (Q: Mar. 2022 )/Interest Expense (Q: Mar. 2022 )
=-1*477/-27
=17.67

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

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

Activision Blizzard's Debt to Revenue Ratio for the quarter that ended in Mar. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 3608) / 7072
=0.51

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.

Activision Blizzard has a Z-score of 6.97, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 6.97 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.


Activision Blizzard  (NAS:ATVI) 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.

Activision Blizzard has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.


Activision Blizzard Financial Strength Related Terms

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


Activision Blizzard Business Description

Activision Blizzard logo
Industry
Address
2701 Olympic Boulevard, Building B, Santa Monica, CA, USA, 90404
Activision Blizzard was formed in 2008 by the merger of Activision, one of the largest console video game publishers, and Blizzard, one of largest PC video game publishers. The combined firm remains one of the world's largest video game publishers. Activision's impressive franchise portfolio includes World of Warcraft, which boasts more than $8 billion of lifetime sales, and Call of Duty, which has sold over 175 million copies across 14 titles over 12 years.
Executives
Kotick Robert A director, officer: Chief Executive Officer 3100 OCEAN PARK BLVD SANTA MONICA CA 90405
Wasserman Casey director C/O ACTIVISION BLIZZARD, INC. 3100 OCEAN PARK BLVD. SANTA MONICA CA 90405
Durkin Dennis M officer: Chief Financial Officer C/O ACTIVISION BLIZZARD, INC. 3100 OCEAN PARK BLVD SANTA MONICA CA 90405
Yang Jesse officer: Chief Accounting Officer C/O ACTIVISION BLIZZARD, INC. 3100 OCEAN PARK BOULEVARD SANTA MONICA CA 90405
Macartney Claudine officer: Chief People Officer AMERICAN INTERNATIONAL GROUP, INC. 175 WATER ST. NEW YORK NY 10038
Johnson Collister officer: Special Advisor; Former Pres. C/O ACTIVISION BLIZZARD, INC. 3100 OCEAN PARK BOULEVARD SANTA MONICA CA 90405
Corti Robert J director C/O AVON PRODUCTS INC 1345 AVENUE OF THE AMERICAS NEW YORK NY 10105-0196
Morgado Robert J director 3100 OCAN PARK BLVD SANTA MONICA CA 90405
Kelly Brian G director 3100 OCEAN PARK BLVD SANTA MONICA CA 90405
Bowers Reveta F director C/O ACTIVISION BLIZZARD, INC. 3100 OCEAN PARK BOULEVARD SANTA MONICA CA 90405
Nolan Peter J director 11111SANTA MONICA BLVD STE 2000 LOS ANGELES CA 90025
Meyer Barry director C/O ACTIVISION BLIZZARD, INC. 3100 OCEAN PARK BLVD. SANTA MONICA CA 90405
Hartong Hendrik Iii director C/O ACTIVISION BLIZZARD, INC. 3100 OCEAN PARK BLVD. SANTA MONICA CA 90405
Ostroff Dawn director 3100 OCEAN PARK BOULEVARD SANTA MONICA CA 91405
Alegre Daniel officer: President and COO 9800 59TH AVENUE NORTH MINNEAPOLIS MN 55317

Activision Blizzard Headlines

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