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Nerdwallet (Nerdwallet) Financial Strength

: 9 (As of Dec. 2023)
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Nerdwallet has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Nerdwallet Inc 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.

Nerdwallet's Interest Coverage for the quarter that ended in Dec. 2023 was 23.00. Nerdwallet's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.02. As of today, Nerdwallet's Altman Z-Score is 13.59.


Competitive Comparison

For the Internet Content & Information subindustry, Nerdwallet'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.


Nerdwallet Financial Strength Distribution

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

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



Nerdwallet 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:

Nerdwallet's Interest Expense for the months ended in Dec. 2023 was $-0.2 Mil. Its Operating Income for the months ended in Dec. 2023 was $4.6 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $6.2 Mil.

Nerdwallet's Interest Coverage for the quarter that ended in Dec. 2023 is

Interest Coverage=-1*Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*4.6/-0.2
=23.00

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

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

Nerdwallet's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(3.4 + 6.2) / 534.8
=0.02

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.

Nerdwallet has a Z-score of 13.59, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 13.59 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.


Nerdwallet  (NAS:NRDS) 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.

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


Nerdwallet Financial Strength Related Terms

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


Nerdwallet (Nerdwallet) Business Description

Traded in Other Exchanges
Address
55 Hawthorne Street, 11th Floor, San Francisco, CA, USA, 94105
Nerdwallet Inc is a free tool to find you the best credit cards, cd rates, savings, checking accounts, scholarships, healthcare, personal loans and airlines.
Executives
Maurice Kevin Taylor director 55 HAWTHORNE STREET, 11TH FLOOR, SAN FRANCISCO CA 94105
Tim Chao-ming Chen director, 10 percent owner, officer: Chief Executive Officer 55 HAWTHORNE, FLOOR 11, SAN FRANCISCO CA 94105
Kevin Yuann officer: Chief Business Officer 55 HAWTHORNE, FLOOR 11, SAN FRANCISCO CA 94105
Samuel Yount officer: VP, General Manager 55 HAWTHORNE STREET, 11TH FLOOR, SAN FRANCISCO CA 94105
John Caine officer: Chief Product Officer 350 FIFTH AVE, 20TH FLOOR, NEW YORK NY 10118
Lauren Stclair officer: Chief Financial Officer 55 HAWTHORNE, FLOOR 11, SAN FRANCISCO CA 94105
Kelly Gillease officer: Chief Marketing Officer 55 HAWTHORNE, FLOOR 11, 5TH FLOOR, SAN FRANCISCO CA 94105
Lynne Marie Laube director C/O CARDLYTICS, INC., 675 PONCE DE LEON AVENUE NE, SUITE 6000, ATLANTA GA 30308
Thomas Loverro director 55 HAWTHORNE, FLOOR 11, 5TH FLOOR, SAN FRANCISCO CA 94105
Jennifer Ceran director C/O QUOTIENT TECHNOLOGY INC., 400 LOGUE AVE, MOUNTAIN VIEW CA 94043
Kenneth Thomas Mcbride director STAMPS.COM INC., 1990 E. GRAND AVE., EL SEGUNDO CA 90245
Robinson James D Iii director ONE COCA-COLA PLAZA, ATLANTA GA 30313
Innovius Capital Gp I, Llc 10 percent owner FOUR EMBARCADERO CENTER, SUITE 3720, SAN FRANCISCO CA 94111
Jules A. Maltz 10 percent owner 3000 SAND HILL ROAD, BUILDING 2, SUITE 250, MENLO PARK CA 94025
Institutional Venture Management Xiv, Llc 10 percent owner 3000 SAND HILL ROAD, BUILDING 2, SUITE 250, MENLO PARK CA 94025

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