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Magnite Financial Strength

: 3 (As of Jun. 2022)
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Magnite 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:

Magnite 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.

Magnite did not have earnings to cover the interest expense. Magnite's debt to revenue ratio for the quarter that ended in Jun. 2022 was 1.47. As of today, Magnite's Altman Z-Score is 0.35.


Competitive Comparison

For the Advertising Agencies subindustry, Magnite'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.

   

Magnite Financial Strength Distribution

For the Media - Diversified industry and Communication Services sector, Magnite's Financial Strength distribution charts can be found below:

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



Magnite 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:

Magnite's Interest Expense for the months ended in Jun. 2022 was $-7.1 Mil. Its Operating Income for the months ended in Jun. 2022 was $-22.6 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $785.3 Mil.

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

Magnite 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.

Magnite'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
=(22.956 + 785.336) / 551.12
=1.47

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.

Magnite has a Z-score of 0.35, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.35 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.


Magnite  (NAS:MGNI) 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.

Magnite 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.


Magnite Financial Strength Related Terms

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


Magnite Business Description

Magnite logo
Traded in Other Exchanges
Address
1250 Broadway, 15th Floor, New York, NY, USA, 10001
Magnite Inc is an independent sell-side advertising platform that combines Rubicon Project's programmatic expertise with Telaria's leadership in CTV. The company provides a technology solution to automate the purchase and sale of digital advertising inventory. Publishers use the company's technology to monetize their content across all screens and formats, including desktop, mobile, audio, and CTV. Anchored in sunny Los Angeles, California, New York, and London, Magnite has offices across North America, EMEA, LATAM, and APAC.
Executives
Yu Diane director C/O MAGNITE, INC. 1250 BROADWAY, 15TH FLOOR NEW YORK NY 10001
Pearson David T. director C/O VONAGE HOLDINGS CORP 23 MAIN STREET HOLMDEL NJ 07733
Gephart Brian officer: Chief Accounting Officer 1655 26TH STREET SANTA MONICA CA 90404
Harden Sarah Patricia director C/O THE RUBICON PROJECT, INC. 12181 BLUFF CREEK DRIVE, 4TH FLOOR PLAYA VISTA CA 90094
Dove James Allen officer: Chief Technology Officer C/O MAGNITE, INC. 6080 CENTER DRIVE, 4TH FLOOR LOS ANGELES CA 90045
Buckley Sean Patrick officer: Chief Revenue Officer, CTV C/O MAGNITE, INC. 6080 CENTER DRIVE, 4TH FLOOR LOS ANGELES CA 90045
Prusz Joseph R officer: Global Chief Revenue Officer C/O THE RUBICON PROJECT, INC. 12181 BLUFF CREEK DRIVE, 4TH FLOOR PLAYA VISTA CA 90094
Barrett Michael G. director, officer: CEO C/O THE RUBICON PROJECT, INC. 12181 BLUFF CREEK DRIVE, 4TH FLOOR PLAYA VISTA CA 90094
Hughes Shawna officer: Chief Accounting Officer 12181 BLUFF CREEK DR., 4TH FLOOR LOS ANGELES CA 90094
Kershaw Thomas officer: Chief Technology Officer C/O THE RUBICON PROJECT, INC. 12181 BLUFF CREEK DRIVE, 4TH FL LOS ANGELES CA 90094
Evans Katie Seitz officer: Chief Operating Officer C/O TREMOR VIDEO, INC. 1501 BROADWAY, SUITE 801 NEW YORK NY 10036
Soroca Adam Lee officer: Head of Global Buyer Team C/O THE RUBICON PROJECT, INC. 12181 BLUFF CREEK DR., 4TH FLOOR PLAYA VISTA CA 90094
Rossman James director DIGITAS INC. 800 BOYLSTON STREET BOSTON MA 02199
Knopper Douglas S director C/O MEDIALINK WORLDWIDE INCORPORATED 708 THIRD AVENUE NEW YORK NY 10017
Caine Paul director C/O TREMOR VIDEO, INC. 53 WEST 23RD STREET NEW YORK NY 10010

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Why Magnite Stock Could Bounce Back

By tipranks.com 2022-03-07

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