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Rent the Runway Financial Strength

: 3 (As of Apr. 2022)
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Rent the Runway 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:

Rent the Runway 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.

Rent the Runway did not have earnings to cover the interest expense. Rent the Runway's debt to revenue ratio for the quarter that ended in Apr. 2022 was 1.17. As of today, Rent the Runway's Altman Z-Score is -2.59.


Competitive Comparison

For the Apparel Retail subindustry, Rent the Runway'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.

   

Rent the Runway Financial Strength Distribution

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

* The bar in red indicates where Rent the Runway's Financial Strength falls into.



Rent the Runway 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:

Rent the Runway's Interest Expense for the months ended in Apr. 2022 was $-9.3 Mil. Its Operating Income for the months ended in Apr. 2022 was $-33.2 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Apr. 2022 was $306.6 Mil.

Rent the Runway's Interest Coverage for the quarter that ended in Apr. 2022 is

Rent the Runway 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.

Rent the Runway's Debt to Revenue Ratio for the quarter that ended in Apr. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Apr. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(7.1 + 306.6) / 268.4
=1.17

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.

Rent the Runway has a Z-score of -2.59, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of -2.59 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.


Rent the Runway  (NAS:RENT) 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.

Rent the Runway 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.


Rent the Runway Financial Strength Related Terms

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


Rent the Runway Business Description

Rent the Runway logo
Traded in Other Exchanges
N/A
Address
10 Jay Street, Brooklyn, NY, USA, 11201
Rent the Runway Inc is an e-commerce platform that allows users to rent, subscribe, or buy designer apparel and accessories.
Executives
Schembri Cara officer: GC & Secretary C/O RENT THE RUNWAY, INC. 10 JAY STREET BROOKLYN NY 11201
Bain Capital Venture Partners 2009, L.p. 10 percent owner JOHN HANCOCK TOWER 200 CLARENDON STREET BOSTON MA 02116
Highland Management Partners Viii Ltd 10 percent owner ONE BROADWAY, 16TH FLOOR CAMBRIDGE MA 02142
Highland Management Partners Viii Limited Partnership 10 percent owner ONE BROADWAY, 16TH FLOOR CAMBRIDGE MA 02142
Highland Leaders Fund I, L.p. 10 percent owner ONE BROADWAY, 16TH FLOOR CAMBRIDGE MA 02142
O'sullivan Scarlett officer: Chief Financial Officer 225 WEST WASHINGTON STREET INDIANAPOLIS IN 46204
Highland Leaders Fund I Gp, Llc 10 percent owner ONE BROADWAY 16TH FLOOR CAMBRIDGE MA 02142
Highland Leaders Fund I Gp, L.p. 10 percent owner ONE BROADWAY 16TH FLOOR CAMBRIDGE MA 02142
Friend Scott director, 10 percent owner 200 CLARENDON ST BOSTON MA 02116
Bain Capital Venture Fund 2009, L.p. 10 percent owner JOHN HANCOCK TOWER 200 CLARENDON STREET BOSTON MA 02116
Donato Brian officer: Chief Supply Chain Officer C/O RENT THE RUNWAY, INC. 10 JAY STREET BROOKLYN NY 11201
Salinas Anushka officer: President & COO C/O RENT THE RUNWAY, INC. 10 JAY STREET BROOKLYN NY 11201
Roth Michael director C/O RENT THE RUNWAY, INC. 10 JAY STREET BROOKLYN NY 11201
Harris Melanie director C/O RENT THE RUNWAY, INC. 10 JAY STREET BROOKLYN NY 11201
Paltrow Gwyneth director C/O RENT THE RUNWAY, INC. 10 JAY STREET BROOKLYN NY 11201

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