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Opendoor Technologies Financial Strength

: 4 (As of Jun. 2022)
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Opendoor Technologies 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.

Opendoor Technologies's Interest Coverage for the quarter that ended in Jun. 2022 was 0.36. Opendoor Technologies's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.45. As of today, Opendoor Technologies's Altman Z-Score is 2.28.


Competitive Comparison

For the Real Estate Services subindustry, Opendoor Technologies'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.

   

Opendoor Technologies Financial Strength Distribution

For the Real Estate industry and Real Estate sector, Opendoor Technologies's Financial Strength distribution charts can be found below:

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



Opendoor Technologies 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:

Opendoor Technologies's Interest Expense for the months ended in Jun. 2022 was $-89 Mil. Its Operating Income for the months ended in Jun. 2022 was $32 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $4,174 Mil.

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

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*32/-89
=0.36

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

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

Opendoor Technologies'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
=(3381 + 4174) / 16792
=0.45

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.

Opendoor Technologies has a Z-score of 2.28, indicating it is in Grey Zones. This implies that Opendoor Technologies 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 2.28 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.


Opendoor Technologies  (NAS:OPEN) 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.

Opendoor Technologies has the Financial Strength Rank of 4.


Opendoor Technologies Financial Strength Related Terms

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


Opendoor Technologies Business Description

Opendoor Technologies logo
Traded in Other Exchanges
Address
410 N. Scottsdale Road, Suite 1600, Tempe, AZ, USA, 85281
Opendoor Technologies Inc is a digital platform for residential real estate. This platform enables customers to buy and sell houses online. It generates revenue through home sales, along with other revenue from real estate services.
Executives
Rice E. John Jr director 7272 WISCONSIN AVENUE SUITE 1300 BETHESDA MD 20814
Wheeler Carrie officer: CFO 500 VOLVO PARKWAY CHESAPEAKE VA 23320
Wu Eric Chung-wei director, officer: CEO C/O OPENDOOR TECHNOLOGIES INC. 1 POST STREET, FLOOR 11 SAN FRANCISCO CA 94104
Todaro Julie Marie officer: President of Homes & Services C/O OPENDOOR TECHNOLOGIES INC. 1 POST STREET, FLOOR 11 SAN FRANCISCO CA 94104
Stevens Elizabeth Ann officer: Head of Legal C/O OPENDOOR TECHNOLOGIES INC. 1 POST STREET, FLOOR 11 SAN FRANCISCO CA 94104
Willerer Tom Joseph officer: Chief Product Officer C/O OPENDOOR TECHNOLOGIES INC. 1 POST STREET, FLOOR 11 SAN FRANCISCO CA 94104
Wong Ian Hoi Ming officer: CTO C/O OPENDOOR TECHNOLOGIES INC. 1 POST STREET, FLOOR 11 SAN FRANCISCO CA 94104
Keffer Pueo director C/O OPENDOOR TECHNOLOGIES INC. 1 POST STREET, FLOOR 11 SAN FRANCISCO CA 94104
Svf Excaliber (cayman) Ltd 10 percent owner 27 HOSPITAL ROAD, WALKERS CORPORATE LTD. CAYMAN CORPORATE CENTRE GEORGE TOWN, GRAND CAYMAN E9 KY-9008
Svf Endurance (cayman) Ltd 10 percent owner C/O WALKERS CORPORATE LIMITED 27 HOSPITAL ROAD GEORGE TOWN E9 KY1-9008
Softbank Vision Fund (aiv M1) L.p. 10 percent owner 251 LITTLE FALLS DRIVE WILMINGTON DE 19808
Sb Investment Advisers (uk) Ltd 10 percent owner 69 GROSVENOR STREET LONDON X0 W1K 3JP
Low Ah Kee Andrew officer: President C/O GODADDY INC. 14455 N. HAYDEN RD. SCOTTSDALE AZ 85260
Solomon Glenn director C/O GGV CAPITAL 3000 SAND HILL ROAD, SUITE 4-230 MENLO PARK CA 94025
Jaffe Jonathan M director LENNAR CORPORATION 700 NW 107 AVE 4TH FLR MIAMI FL 33172

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