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BLKB (Blackbaud) Financial Strength : 3 (As of Mar. 2025)


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What is Blackbaud Financial Strength?

Blackbaud has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Blackbaud Inc displays poor financial strength. Usually, this is caused by too much debt for the company.

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.

Blackbaud's Interest Coverage for the quarter that ended in Mar. 2025 was 1.21. Blackbaud's debt to revenue ratio for the quarter that ended in Mar. 2025 was 1.12. As of today, Blackbaud's Altman Z-Score is 0.89.


Competitive Comparison of Blackbaud's Financial Strength

For the Software - Application subindustry, Blackbaud'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.


Blackbaud's Financial Strength Distribution in the Software Industry

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

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


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Blackbaud 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:

Blackbaud's Interest Expense for the months ended in Mar. 2025 was $-17 Mil. Its Operating Income for the months ended in Mar. 2025 was $20 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was $1,185 Mil.

Blackbaud'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*20.43/-16.945
=1.21

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

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Blackbaud Inc interest coverage is 2.32, which is low.

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

Blackbaud'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
=(23.35 + 1184.738) / 1082.644
=1.12

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.

Blackbaud has a Z-score of 0.89, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.89 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.


Blackbaud  (NAS:BLKB) 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.

Blackbaud has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Blackbaud Financial Strength Related Terms

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Blackbaud Business Description

Traded in Other Exchanges
N/A
Address
65 Fairchild Street, Charleston, SC, USA, 29492
Founded in 1981, Blackbaud provides software solutions designed to serve the "social good" community, including nonprofits, foundations, corporations, educational institutions, healthcare institutions, and individual change agents. Through M&A and organic product development efforts, the company has also moved into related areas outside core fundraising, notably into K-12 schools. The firm enables more than $100 billion in donations annually across a customer base in excess of 40,000 customers in over 100 countries.
Executives
Jon W Olson officer: General Counsel C/O BLACKBAUD, INC., 2000 DANIEL ISLAND DRIVE, CHARLESTON SC 29492
Kevin Mcdearis officer: Chief Products Officer C/O BLACKBAUD, INC., 65 FAIRCHILD STREET, CHARLESTON SC 29492
Michael P Gianoni director, officer: President and CEO 2000 DANIEL ISLAND DRIVE, CHARLESTON SC 29492
Anthony W Boor officer: CFO and Senior VP C/O BRIGHTPOINT INC, 7635 INTERACTIVE WAY, SUITE 200, INDIANAPOLIS IN 46278
Rupal S Hollenbeck director C/O BLACKBAUD, INC., 65 FAIRCHILD STREET, CHARLESTON SC 29492
Sarah E Nash director 200 MILIK STREET, CARTERET NJ 07008
Kevin P. Gregoire officer: Pres. Enterprise Market Group 255 FISERV DRIVE, BROOKFIELD WI 53045
David J Benjamin officer: EVP, Chief Commercial Officer C/O BLACKBAUD INC., 65 FAIRCHILD STREET, CHARLESTON SC 29492
George H Ellis director 2911 TURTLE CREEK BOULEVARD, SUITE 1100, DALLAS TX 75219
Kevin W Mooney officer: Sr VP&Chief Commercial Officer
Yogesh K Gupta director C/O PROGRESS SOFTWARE CORPORATION, 15 WAYSIDE ROAD, SUITE 400, BURLINGTON MA 01803
Clearlake Capital Group, L.p. 10 percent owner 233 WILSHIRE BOULEVARD, SUITE 800, SANTA MONICA CA 90401
Behdad Eghbali 10 percent owner 233 WILSHIRE BLVD., SUITE 850, SANTA MONICA CA 90401
Jose Enrique Feliciano 10 percent owner C/O CLEARLAKE CAPITAL GROUP, LLC, 650 MADISON AVE., 23RD FLOOR, NEW YORK NY 10022
Joyce Nelson director C/O BLACKBAUD, INC., 2000 DANIEL ISLAND DRIVE, CHARLESTON SC 29492