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Coupa Software Financial Strength

: 3 (As of Apr. 2022)
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Coupa Software 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:

Coupa Software 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 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.

Coupa Software did not have earnings to cover the interest expense. Coupa Software's debt to revenue ratio for the quarter that ended in Apr. 2022 was 2.80. As of today, Coupa Software's Altman Z-Score is 0.94.


Competitive Comparison

For the Software - Application subindustry, Coupa Software'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.

   

Coupa Software Financial Strength Distribution

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

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



Coupa Software 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:

Coupa Software's Interest Expense for the months ended in Apr. 2022 was $-3.5 Mil. Its Operating Income for the months ended in Apr. 2022 was $-71.3 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Apr. 2022 was $2,185.4 Mil.

Coupa Software's Interest Coverage for the quarter that ended in Apr. 2022 is

Coupa Software 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.

Coupa Software's Debt to Revenue Ratio for the quarter that ended in Apr. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Apr. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(14.64 + 2185.38) / 785.484
=2.80

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.

Coupa Software has a Z-score of 0.94, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.94 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.


Coupa Software  (NAS:COUP) 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.

Coupa Software 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.


Coupa Software Financial Strength Related Terms

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


Coupa Software Business Description

Coupa Software logo
Traded in Other Exchanges
Address
1855 S. Grant Street, San Mateo, CA, USA, 94402
Coupa Software is a cloud-based provider of business spend management, or BSM, solutions. Coupa's BSM platform provides visibility into all spend, allowing companies to gain control over their spending, optimize their supplier network and supply chains, and manage liquidity. The platform's transactional core consists of procurement, invoicing, expense management, and payment solutions, while supporting modules ranging from strategic sourcing solutions to supply chain design and planning solutions round out the comprehensive spend management ecosystem.
Executives
Soni Kanika director C/O TRIPADVISOR INC. 400 1ST AVENUE NEEDHAM MA 02494
Baratta Maurizio officer: Chief Accounting Officer GUNDERSON DETTMER 1855 SOUTH GRANT STREET SAN MATEO CA 94402
Glenn Robert officer: EVP of Global Sales 1855 S. GRANT STREET SAN MATEO CA 94402
Brennan Michelle director 1855 S. GRANT STREET SAN MATEO CA 94402
Riggs Mark officer: Chief Customer Officer 1855 S. GRANT STREET SAN MATEO CA 94402
Brown Michael Maurice other: Former 10% owner ONE MARINA PARK DRIVE SUITE 1100 BOSTON MA 02210
Battery Management Corp. other: Former 10% owner ONE MARINA PARK DRIVE, SUITE 1100 BOSTON MA 02210
Battery Partners Viii, Llc other: Former 10% owner ONE MARINA PARK DRIVE SUITE 1100 BOSTON MA 02210
Agrawal Neeraj other: Former 10% owner ONE MARINA PARK DRIVE SUITE 1100 BOSTON MA 02210
Battery Ventures Viii Lp other: Former 10% owner ONE MARINA PARK DRIVE SUITE 1100 BOSTON MA 02210
Lee Roger H other: Former 10% owner ONE MARINA PARK DRIVE SUITE 1100 BOSTON MA 02210
Tobin Scott R other: Former 10% owner ONE MARINA PARK DRIVE SUITE 1100 BOSTON MA 02210
Tabors R David other: Former 10% owner ONE MARINA PARK DRIVE SUITE 1100 BOSTON MA 02210
Crotty Thomas J other: Former 10% owner ONE MARINA PARK DRIVE SUITE 1100 BOSTON MA 02210
Lawler Kenneth P other: Former 10% owner ONE MARINA PARK DRIVE SUITE 1100 BOSTON MA 02210

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