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Robinhood Markets Financial Strength

: 5 (As of Jun. 2022)
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Robinhood Markets has the Financial Strength Rank of 5.

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.

GuruFocus does not calculate Robinhood Markets's interest coverage with the available data. Robinhood Markets's debt to revenue ratio for the quarter that ended in Jun. 2022 was 1.20. As of today, Robinhood Markets's Altman Z-Score is 0.10.


Competitive Comparison

For the Software - Infrastructure subindustry, Robinhood Markets'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.

   

Robinhood Markets Financial Strength Distribution

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

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



Robinhood Markets 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:

Robinhood Markets's Interest Expense for the months ended in Jun. 2022 was $0 Mil. Its Operating Income for the months ended in Jun. 2022 was $-285 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $132 Mil.

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

GuruFocus does not calculate Robinhood Markets's interest coverage with the available data.

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. Robinhood Markets Inc has enough cash to cover all of its debt. Its financial situation is stable.

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

Robinhood Markets'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
=(1389 + 132) / 1272
=1.20

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.

Robinhood Markets has a Z-score of 0.10, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.1 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.


Robinhood Markets  (NAS:HOOD) 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.

Robinhood Markets has the Financial Strength Rank of 5.


Robinhood Markets Financial Strength Related Terms

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


Robinhood Markets Business Description

Robinhood Markets logo
Traded in Other Exchanges
Address
85 Willow Road, Menlo Park, CA, USA, 94025
Robinhood Markets Inc is creating a modern financial services platform. It designs its own products and services and delivers them through a single, app-based cloud platform supported by proprietary technology. Its vertically integrated platform has enabled the introduction of new products and services such as cryptocurrency trading, dividend reinvestment, fractional shares, recurring investments, and IPO Access. It earns transaction-based revenues from routing user orders for options, equities, and cryptocurrencies to market makers when a routed order is executed.
Executives
Malka Meyer director C/O MERCADOLIBRE, INC. ARIAS 3751, 7TH FLOOR BUENOS AIRES C1 C1C1430CRG
Frei Frances X director ADVANCE AUTO PARTS, INC. 5008 AIRPORT RD ROANOKE VA 24012
Treseder Oluwadara Johnson director C/O ROBINHOOD MARKETS, INC. 85 WILLOW ROAD MENLO PARK CA 94025
Yucca (jersey) Slp director, 10 percent owner NO. 1 SEATON PLACE ST. HELIER Y9 Y9 JE48YJ
Hammer Jan director INDEX VENTURES 44 ESPLANADE ST. HELIER Y9 JE4 9WG
Index Ventures Growth V (jersey), L.p. director, 10 percent owner C/O EFG WEALTH SOLUTIONS (JERSEY) LTD. 44 ESPLANADE, 5TH FLOOR ST. HELIER Y9 JE1 3FG
Nea 17 Gp, Llc director, 10 percent owner 1954 GREENSPRING DRIVE SUITE 600 TIMONIUM MD 21093
Nea Partners 17, L.p. director, 10 percent owner 1954 GREENSPRING DRIVE SUITE 600 TIMONIUM MD 21093
New Enterprise Associates 17, L.p. director, 10 percent owner 1954 GREENSPRING DRIVE SUITE 600 TIMONIUM MD 21093
Index Venture Growth Associates Iii Ltd director, 10 percent owner 5TH FLOOR, 44 ESPLANADE ST. HELIER, CHANNEL ISLANDS Y9 JE1 3FG
Index Venture Associates Vi Ltd director, 10 percent owner 5TH FLOOR, 44 ESPLANADE ST. HELIER, CHANNEL ISLANDS Y9 JE1 3FG
Index Ventures Vi Parallel Entrepreneur Fund (jersey) Lp director, 10 percent owner NO. 1 SEATON PLACE ST. HELIER, CHANNEL ISLANDS Y9 JE48YJ
Index Ventures Vi (jersey) Lp director, 10 percent owner NO. 1 SEATON PLACE ST. HELIER, CHANNEL ISLANDS Y9 JE48YJ
Index Ventures Growth Iii (jersey), L.p. director, 10 percent owner C/O EFG WEALTH SOLUTIONS (JERSEY) LTD NO. 1 SEATON PLACE ST. HELIER Y9 JE4 8YJ
Index Venture Associates V Ltd director, 10 percent owner 44 ESPLANADE ST. HELIER, CHANNEL ISLANDS Y9 JE4 9WG

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