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Equinix Financial Strength

: 4 (As of Jun. 2022)
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Equinix has the Financial Strength Rank of 4.

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.

Equinix's Interest Coverage for the quarter that ended in Jun. 2022 was 3.55. Equinix's debt to revenue ratio for the quarter that ended in Jun. 2022 was 2.25. As of today, Equinix's Altman Z-Score is 2.33.


Competitive Comparison

For the REIT - Specialty subindustry, Equinix'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.

   

Equinix Financial Strength Distribution

For the REITs industry and Real Estate sector, Equinix's Financial Strength distribution charts can be found below:

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



Equinix 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:

Equinix's Interest Expense for the months ended in Jun. 2022 was $-91 Mil. Its Operating Income for the months ended in Jun. 2022 was $323 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $16,010 Mil.

Equinix's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*322.822/-90.826
=3.55

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

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

Equinix's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(318.853 + 16010.032) / 7268.616
=2.25

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.

Equinix has a Z-score of 2.33, indicating it is in Grey Zones. This implies that Equinix is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.33 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* 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.


Equinix  (NAS:EQIX) 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.

Equinix has the Financial Strength Rank of 4.


Equinix Financial Strength Related Terms

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


Equinix Business Description

Equinix logo
Address
One Lagoon Drive, Redwood City, CA, USA, 94065
Equinix is a retail provider of data centers, enabling hundreds of enterprise tenants to house their servers and networking equipment in a colocated environment. Tenants can then connect with each other, cloud service providers, and telecom networks. Equinix operates 240 data centers in 66 markets worldwide and owns just less than half of them. The firm has roughly 10,000 customers, including 2,000 networks, that are dispersed over five verticals: Cloud and IT Services, Content Providers, Network and Mobile Services, Financial Services, and Enterprise. About 70% of Equinix's revenue comes from renting space to tenants and related services, and more than 15% comes from connecting customers with each other. Equinix operates as a real estate investment trust.
Executives
Lin Jonathan officer: EVP, GM, Data Center Services C/O EQUINIX, INC. ONE LAGOON DRIVE REDWOOD CITY CA 94065
Guerrier Ron director C/O EXPRESS SCRIPTS HOLDING COMPANY ONE EXPRESS WAY ST. LOUIS MO 63121
Caldwell Nanci director C/O DELTEK, INC. 2291 WOOD OAK DRIVE HERNDON VA 20171
Fox-martin Adaire director, Director C/O EQUINIX, INC ONE LAGOON DRIVE REDWOOD CITY CA 94065
Rivera Sandra L director, Director ONE LAGOON DRIVE REDWOOD CITY CA 94065
Bartlett Thomas A director 116 HUNTINGTON AVENUE BOSTON MA 02116
Lyons Irving F Iii director C/O ESSEX PROPERTY TRUST, INC. 925 E. MEADOW DRIVE PALO ALTO CA 94303
Miller Simon officer: Chief Accounting Officer 1 LAGOON DR REDWOOD CITY CA 94065
Paisley Christopher B director 14870 THREE OAKS COURT SARATOGA CA 95070
Baack Sara officer: Chief Product Officer ONE LAGOON DRIVE 4TH FLOOR REDWOOD CITY CA 94065
Campbell Michael Earl officer: Chief Sales Officer 1 LAGOON DRIVE REDWOOD CITY CA 94065
Strohmeyer Karl officer: Chief Customer & Rev Officer ONE LAGOON DRIVE 4TH FLOOR REDWOOD CITY CA 94065
Meyers Charles J officer: CEO and President 301 VELOCITY WAY 5TH FLOOR FOSTER CITY CA 94404
Hughes John L director 9555 MAROON CIRCLE ENGELWOOD CO 80112
Lee Yau Tat officer: President - Asia Pacific ONE LAGOON DRIVE 4TH FLOOR REDWOOD CITY CA 94065

Equinix Headlines

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