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Weibo Financial Strength

: 5 (As of Sep. 2021)
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Weibo has the Financial Strength Rank of 5.

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.

Weibo's Interest Coverage for the quarter that ended in Sep. 2021 was 435.68. Weibo's debt to revenue ratio for the quarter that ended in Sep. 2021 was 1.00. As of today, Weibo's Altman Z-Score is 3.13.


Competitive Comparison

For the Internet Content & Information subindustry, Weibo'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.

   

Weibo Financial Strength Distribution

For the Interactive Media industry and Communication Services sector, Weibo's Financial Strength distribution charts can be found below:

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



Weibo 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:

Weibo's Interest Expense for the months ended in Sep. 2021 was $-0 Mil. Its Operating Income for the months ended in Sep. 2021 was $213 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2021 was $2,433 Mil.

Weibo's Interest Coverage for the quarter that ended in Sep. 2021 is

Interest Coverage=-1*Operating Income (Q: Sep. 2021 )/Interest Expense (Q: Sep. 2021 )
=-1*213.049/-0.489
=435.68

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

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

Weibo's Debt to Revenue Ratio for the quarter that ended in Sep. 2021 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2021 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 2433.345) / 2429.736
=1.00

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.

Weibo has a Z-score of 3.13, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.13 is strong.

* 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.


Weibo  (NAS:WB) 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.

Weibo has the Financial Strength Rank of 5.


Weibo Financial Strength Related Terms

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


Weibo Business Description

Weibo logo
Industry
Traded in Other Exchanges
Address
No. 8 Xinyuan S. Road, 8th Floor, QIHAO Plaza, Chaoyang District, Beijing, CHN, 100027
Weibo is the largest social media platform in China. As of 2020, Weibo had 521 million monthly active users and 225 million daily active users, many of whom are drawn there by the millions of key opinion leaders in entertainment, sports, and business circles. Sina is the major shareholder, holding 44.7% of shares and with 70.8% voting power; Alibaba holds 29.8% of shares and 15.7% voting power.

Weibo Headlines

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