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Sonder Holdings Financial Strength

: 3 (As of Mar. 2022)
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Sonder Holdings 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:

Sonder Holdings 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.

Sonder Holdings did not have earnings to cover the interest expense. Sonder Holdings's debt to revenue ratio for the quarter that ended in Mar. 2022 was 4.26. As of today, Sonder Holdings's Altman Z-Score is -0.07.


Competitive Comparison

For the Lodging subindustry, Sonder Holdings'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.

   

Sonder Holdings Financial Strength Distribution

For the Travel & Leisure industry and Consumer Cyclical sector, Sonder Holdings's Financial Strength distribution charts can be found below:

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



Sonder Holdings 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:

Sonder Holdings's Interest Expense for the months ended in Mar. 2022 was $-8.20 Mil. Its Operating Income for the months ended in Mar. 2022 was $-95.76 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2022 was $1,227.62 Mil.

Sonder Holdings's Interest Coverage for the quarter that ended in Mar. 2022 is

Sonder Holdings did not have earnings to cover the interest expense.

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

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Sonder Holdings Inc interest coverage is 1.46, which is low.

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

Sonder Holdings's Debt to Revenue Ratio for the quarter that ended in Mar. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(143.014 + 1227.618) / 321.864
=4.26

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.

Sonder Holdings has a Z-score of -0.07, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of -0.07 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.


Sonder Holdings  (NAS:SOND) 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.

Sonder Holdings 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.


Sonder Holdings Financial Strength Related Terms

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


Sonder Holdings Business Description

Sonder Holdings logo
Traded in Other Exchanges
Address
101 15th Street, San Francisco, CA, USA, 94103
Sonder Holdings Inc is engaged in providing hospitality through its tech-enabled services. It offers several accommodation options ranging from spacious rooms to fully-equipped suites and apartments. The company's Sonder app gives guests self-service features, simple check-in, and 24/7 on-the-ground support, amenities, and services.
Executives
Sears Janice L. director 1100 PARK PLACE SUITE 200 SAN MATEO CA 94403
Perez-alvarado Gilda director C/O SONDER HOLDINGS, INC. 101 15TH ST. SAN FRANCISCO CA 94103
Davidson Francis director, officer: Chief Executive Officer C/O SONDER HOLDINGS, INC. 101 15TH ST SAN FRANCISCO CA 94103
Picard Martin officer: Global Head of Real Estate C/O SONDER HOLDINGS, INC. 101 15TH ST SAN FRANCISCO CA 94103
Banker Sanjay D officer: President and CFO C/O SONDER HOLDINGS, INC. 101 15TH ST SAN FRANCISCO CA 94103
Hyatt Nabeel A director C/O SONDER HOLDINGS, INC. 101 15TH ST SAN FRANCISCO CA 94103
Patel Ritesh K officer: VP, Controller C/O SONDER HOLDINGS INC. 101 15TH ST. SAN FRANCISCO CA 94103
Pandya Satyen J officer: Chief Technology Officer C/O SONDER HOLDINGS, INC. 101 15TH ST. SAN FRANCISCO CA 94103
Rothenberg Philip L officer: General Counsel & Secretary C/O SONDER HOLDINGS, INC. 101 15TH ST SAN FRANCISCO CA 94103
Brouillette Manon director 40 AVENUE SPRINGGROVE MONTREAL Z4 H3C 4M8
Van Paasschen Frits D director C/O STARWOOD HOTELS & RESORTS WORLDWIDE 1111 WESTCHESTER AVENUE WHITE PLAINS NY 10604
Gatto Joseph D director 146 BROOKSIDE DRIVE GREENWICH CT 06831
Bort Randy director 1150 N. ALMA SCHOOL ROAD MESA AZ 85201
Mcbride Andrew officer: CFO & Secretary 9800 WILSHIRE BLVD. BEVERLY HILLS CA 90212
Aeg Holdings, Llc director, 10 percent owner 6260 LOOKOUT RD. BOULDER CO 80301
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