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Qurate Retail Financial Strength

: 4 (As of Jun. 2022)
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Qurate Retail 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.

Qurate Retail's Interest Coverage for the quarter that ended in Jun. 2022 was 1.53. Qurate Retail's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.55. As of today, Qurate Retail's Altman Z-Score is 1.46.


Competitive Comparison

For the Internet Retail subindustry, Qurate Retail'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.

   

Qurate Retail Financial Strength Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Qurate Retail's Financial Strength distribution charts can be found below:

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



Qurate Retail 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:

Qurate Retail's Interest Expense for the months ended in Jun. 2022 was $-119 Mil. Its Operating Income for the months ended in Jun. 2022 was $182 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $5,360 Mil.

Qurate Retail'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*182/-119
=1.53

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

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

Qurate Retail'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
=(1109 + 5360) / 11812
=0.55

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.

Qurate Retail has a Z-score of 1.46, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.46 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.


Qurate Retail  (NAS:QRTEA) 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.

Qurate Retail has the Financial Strength Rank of 4.


Qurate Retail Financial Strength Related Terms

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


Qurate Retail Business Description

Qurate Retail logo
Address
12300 Liberty Boulevard, Englewood, CO, USA, 80112
Qurate Retail Inc, through its subsidiaries, is engaged in the video and online commerce industries. Its segments include QxH, which includes QVC U.S. and HSN market and sell a wide variety of consumer products in the United States, primarily using their televised shopping programs and via the Internet through their websites and mobile applications; QVC International segment markets and sells a wide variety of consumer products in several foreign countries, primarily using its televised shopping programs and via the Internet through its international websites and mobile applications; and Zulily markets and sells a wide variety of consumer products in the United States and several foreign countries. Its geographical segments include the United States, Japan, Germany, and Other countries.
Executives
Rawlinson David officer: President/CEO-Elect C/O NIELSEN HOLDINGS PLC 85 BROAD ST NEW YORK NY 10004
Wong Andrea L director 12300 LIBERTY BLVD. ENGLEWOOD CO 80112
Wendling Brian J officer: CAO/PFO 12300 LIBERTY BOULEVARD ENGLEWOOD CO 80112
Wilm Renee L officer: Chief Legal Officer 12300 LIBERTY BOULEVARD ENGLEWOOD CO 80112
Dias Fiona P director
Barton Richard N director C/O IAC 152 WEST 57TH STREET NEW YORK NY 10019
Carleton Mark D officer: Chief Financial Officer 12300 LIBERTY BLVD. ENGLEWOOD CO 80112
Vadon Mark C director 705 FIFTH AVE S STE 900 SEATTLE WA 98104
Baer Richard N officer: SVP, General Counsel
George Michael A director
Romrell Larry E director 12300 LIBERTY BLVD. ENGLEWOOD CO 80112
Gilchrist Malcolm Ian Grant director 12300 LIBERTY BLVD ENGLEWOOD CO 80112
Malone John C director, 10 percent owner, officer: Chairman of the Board 12300 LIBERTY BLVD ENGLEWOOD CO 80112
Fisher Donne F director 12300 LIBERTY BLVD ENGLEWOOD CO 80112
Malone Evan Daniel director 12300 LIBERTY BLVD ENGLEWOOD CO 80112

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