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Natera Financial Strength

: 6 (As of Jun. 2022)
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Natera has the Financial Strength Rank of 6.

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.

Natera did not have earnings to cover the interest expense. Natera's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.51. As of today, Natera's Altman Z-Score is 2.62.


Competitive Comparison

For the Diagnostics & Research subindustry, Natera'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.

   

Natera Financial Strength Distribution

For the Medical Diagnostics & Research industry and Healthcare sector, Natera's Financial Strength distribution charts can be found below:

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



Natera 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:

Natera's Interest Expense for the months ended in Jun. 2022 was $-2.2 Mil. Its Operating Income for the months ended in Jun. 2022 was $-143.1 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $346.4 Mil.

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

Natera 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.

Natera'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
=(55.722 + 346.437) / 792.8
=0.51

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.

Natera has a Z-score of 2.62, indicating it is in Grey Zones. This implies that Natera 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 2.62 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.


Natera  (NAS:NTRA) 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.

Natera has the Financial Strength Rank of 6.


Natera Financial Strength Related Terms

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


Natera Business Description

Natera logo
Traded in Other Exchanges
N/A
Address
13011 McCallen Pass, Building A Suite 100, Austin, TX, USA, 78753
Natera Inc is operative in the healthcare field in the United States. Its core business is to offer invasive and other means of diagnosing the genetic features of a fetus. Natera's array of diagnostic services includes Panorama Non-Invasive Prenatal Test that screens for chromosomal abnormalities of a fetus with a blood draw from the mother, Anora Products of Conception (POC) test to analyze fetal chromosomes to understand the cause of miscarriage, and Non-Invasive Paternity Testing (PAT), to determine paternity by studying the fragments of fetal deoxyribonucleic acid (DNA) in a pregnant mother's blood and a blood sample from the alleged father. The Company acquires its revenue by billing an insurance carrier, a clinic, or a patient for the test upon delivery of the test result.
Executives
Healy James director 3000 SAND HILL ROAD, 4-250 MENLO PARK CA 94025
Rabinowitz Daniel officer: CHIEF LEGAL OFFICER C/O NATERA, INC. 13011 MCCALLEN PASS BUILDING A SUITE 100 AUSTIN TX 78753
Bertagnolli Monica director C/O LEAP THERAPEUTICS, INC. 47 THORNDIKE STREET, SUITE B1-1 CAMBRIDGE MA 02141
Brophy Michael Burkes officer: Chief Financial Officer 201 INDUSTRIAL ROAD, SUITE 410 SAN CARLOS CA 94070
Chapman Rowan E director 201 INDUSTRIAL ROAD SUITE 410 SAN CARLOS CA 94070
Sequoia Capital Xii A Delaware L P 10 percent owner C/O SEQUOIA CAPITAL 2800 SAND HILL RD, SUITE 101 MENLO PARK CA 94025
Sc Xii Management Llc 10 percent owner 2800 SAND HILL RD, SUITE 101 MENLO PARK CA 94025
Sequoia Technology Partners Xii A Delaware L P 10 percent owner 2800 SAND HILL RD, SUITE 101 MENLO PARK CA 94025
Sequoia Capital Xii Principals Fund Llc 10 percent owner 2800 SAND HILL RD, SUITE 101 MENLO PARK CA 94025
Botha Roelof director C/O SEQUOIA CAPITAL 2800 SAND HILL RD, SUITE 101 MENLO PARK CA 94025
Schueren Robert Alan officer: Chief Operating Officer 7400 PASEO PADRE PARKWAY FREMONT CA 94555
Claremont Creek Partners Ii, Llc 10 percent owner 300 FRANK H. OGAWA PLAZA, #350 OAKLAND CA 94612
Claremont Creek Partners, Llc 10 percent owner 300 FRANK H. OGAWA PLAZA, #350 OAKLAND CA 94612
Baynes Roy D. director C/O RETROPHIN, INC. 12255 EL CAMINO REAL, SUITE 250 SAN DIEGO CA 92130
Chapman Steven Leonard officer: Chief Operating Officer 201 INDUSTRIAL ROAD, SUITE 410 SAN CARLOS CA 94070

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