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DLocal Financial Strength

: 9 (As of Mar. 2022)
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DLocal has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

DLocal Ltd 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.

DLocal's Interest Coverage for the quarter that ended in Mar. 2022 was 22.33. DLocal's debt to revenue ratio for the quarter that ended in Mar. 2022 was 0.03. As of today, DLocal's Altman Z-Score is 16.49.


Competitive Comparison

For the Software - Infrastructure subindustry, DLocal'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.

   

DLocal Financial Strength Distribution

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

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



DLocal 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:

DLocal's Interest Expense for the months ended in Mar. 2022 was $-1.3 Mil. Its Operating Income for the months ended in Mar. 2022 was $29.0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2022 was $3.4 Mil.

DLocal'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*29.01/-1.299
=22.33

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

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. DLocal Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

DLocal'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
=(6.579 + 3.367) / 349.812
=0.03

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.

DLocal has a Z-score of 16.49, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 16.49 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.


DLocal  (NAS:DLO) 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.

DLocal has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.


DLocal Financial Strength Related Terms

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


DLocal Business Description

DLocal logo
Traded in Other Exchanges
N/A
Address
Drive Luis Bonavita 1294, Montevideo, URY, 11300
DLocal Ltd is focused on making the complex simple, redefining the online payments experience in emerging markets. Through its technology platform One dLocal, the company enables global enterprise merchants to get paid (pay-in) and to make payments (pay-out) online in a safe and efficient manner. The company earns revenue from fees charged to merchants in connection with payment processing services for cross-border and local payment transactions.

DLocal Headlines

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