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Establishment Labs Holdings Financial Strength

: 4 (As of Jun. 2022)
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Establishment Labs Holdings 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.

Establishment Labs Holdings did not have earnings to cover the interest expense. Establishment Labs Holdings's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.90. As of today, Establishment Labs Holdings's Altman Z-Score is 3.89.


Competitive Comparison

For the Medical Devices subindustry, Establishment Labs Holdings'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.

   

Establishment Labs Holdings Financial Strength Distribution

For the Medical Devices & Instruments industry and Healthcare sector, Establishment Labs Holdings's Financial Strength distribution charts can be found below:

* The bar in red indicates where Establishment Labs Holdings's Financial Strength falls into.



Establishment Labs Holdings 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:

Establishment Labs Holdings's Interest Expense for the months ended in Jun. 2022 was $-3.4 Mil. Its Operating Income for the months ended in Jun. 2022 was $-10.4 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $147.2 Mil.

Establishment Labs Holdings's Interest Coverage for the quarter that ended in Jun. 2022 is

Establishment Labs Holdings 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.

Establishment Labs Holdings'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
=(0.396 + 147.208) / 164.76
=0.90

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.

Establishment Labs Holdings has a Z-score of 3.89, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.89 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.


Establishment Labs Holdings  (NAS:ESTA) 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.

Establishment Labs Holdings has the Financial Strength Rank of 4.


Establishment Labs Holdings Financial Strength Related Terms

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


Establishment Labs Holdings Business Description

Establishment Labs Holdings logo
Traded in Other Exchanges
Address
Coyol Free Zone, Building B15 and 25, Alajuela, CRI
Establishment Labs Holdings Inc is a medical technology company engaged in offering medical devices and aesthetic products. It is involved in designing, manufacturing, and marketing silicone-filled breast and body shaping implants. The company markets its products under Motiva implants Brand. It distributes its products to medical distributors; and physicians, hospitals, and clinics in the form of direct sales. Its geographical segments are Europe, Latin America, Asia-Pacific/Middle East, and Others.
Executives
Custin Ann director C/O MOTIVA USA, LLC 16192 COASTAL HIGHWAY LEWES DE 19958
Gillin Leslie director C/O MOTIVA USA, LLC 16192 COASTAL HIGHWAY LEWES DE 19958
Slotkin Bryan director C/O MOTIVA USA,.LLC 16192 COASTAL HIGHWAY LEWES DE 19958
Denhoy Raj officer: Chief Financial Officer, Intrm C/O MOTIVA USA, LLC 16192 COASTAL HIGHWAY LEWES DE 19958
Dastidar Pratip officer: Head of Global Operations 150 PEABODY PLACE MEMPHIS TN 38103
Schutter Edward J director C/O FIRST HORIZON PHARMACEUTICAL CORP 6195 SHILOH ROAD ALPHARETTA GA 30005
Gersh Lisa director C/O HASBRO, INC. 1011 NEWPORT AVENUE PAWTUCKET RI 02861
J.w. Opportunities Master Fund, Ltd. 10 percent owner 489 FIFTH AVENUE, 29TH FLOOR NEW YORK NY 10017
Wild Jason G. 10 percent owner JW ASSET MANAGEMENT, LLC 489 FIFTH AVENUE, 29TH FLOOR NEW YORK NY 10017
Jw Gp, Llc 10 percent owner 489 FIFTH AVENUE, 29TH FLOOR NEW YORK NY 10017
Jw Asset Management, Llc 10 percent owner, other: See Footnote(1) 14 NORTH LAKE RD ARMONK NY 10504
J.w. Partners, Lp 10 percent owner 14 NORTH LAKE ROAD ARMONK NY 10504
Lewin Nicholas Sheridan director, 10 percent owner 3 WEST 57TH ST. 8TH FLOOR NEW YORK NY 10019
De Mezerville Roberto officer: Chief Technology Officer C/O MOTIVA USA LLC 16192 COASTAL HIGHWAY LEWES DE 19958
Cph Tu, Lp 10 percent owner 2711 CENTERVILLE ROAD SUITE 400 WILMINGTON DE 19808

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