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Black Knight Financial Strength

: 4 (As of Jun. 2022)
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Black Knight 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.

Black Knight's Interest Coverage for the quarter that ended in Jun. 2022 was 3.77. Black Knight's debt to revenue ratio for the quarter that ended in Jun. 2022 was 1.78. As of today, Black Knight's Altman Z-Score is 2.63.


Competitive Comparison

For the Software - Application subindustry, Black Knight'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.

   

Black Knight Financial Strength Distribution

For the Software industry and Technology sector, Black Knight's Financial Strength distribution charts can be found below:

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



Black Knight 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:

Black Knight's Interest Expense for the months ended in Jun. 2022 was $-23 Mil. Its Operating Income for the months ended in Jun. 2022 was $85 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $2,758 Mil.

Black Knight'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*85.2/-22.6
=3.77

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

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

Black Knight'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
=(44 + 2758.1) / 1578
=1.78

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.

Black Knight has a Z-score of 2.63, indicating it is in Grey Zones. This implies that Black Knight 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 2.63 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.


Black Knight  (NYSE:BKI) 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.

Black Knight has the Financial Strength Rank of 4.


Black Knight Financial Strength Related Terms

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


Black Knight Business Description

Black Knight logo
Traded in Other Exchanges
Address
601 Riverside Avenue, Jacksonville, FL, USA, 32204
Black Knight Inc is a technology company that, through its subsidiaries, provides software, data, and analytics solutions to the mortgage and consumer loan, real estate, and capital markets industry. The company's product portfolio includes software solutions to support loan origination, processing and servicing, and data and analytics solutions such as automated valuation models, data integration, risk assessment, among others. Black Knight's business is organized in two segments: software solutions and data/analytics. The majority of revenue comes from the company's software solutions segment, and most of the company's revenue is earned in the United States.
Executives
Burke Catherine Levinson director C/O NCR CORPORATION 864 SPRING STREET NW ATLANTA GA 30308
Otting Joseph M director C/O CIT GROUP INC. 1 CIT DRIVE, #3251-9 LIVINGSTON NJ 07039
Shanik Nancy L. director CITIZENS FINANCIAL GROUP, INC. 600 WASHINGTON BLVD., CS119N STAMFORD CT 06901
Leonard Shelley S officer: Chief Product & Digital Ofcr 601 RIVERSIDE AVENUE JACKSONVILLE FL 32204
Meyers Michele M officer: Chief Accounting Officer 601 RIVERSIDE AVENUE JACKSONVILLE FL 32207
Jabbour Anthony M officer: Chief Executive Officer 601 RIVERSIDE AVE JACKSONVILLE FL 32204
Nackashi Joseph M officer: President LENDER PROCESSING SERVICES, INC. 601 RIVERSIDE AVE. JACKSONVILLE FL 32204
Thomas H. Lee Equity Fund Vi, L.p. 10 percent owner 100 FEDRAL STREET FLOOR 35 BOSTON MA 02110
Thl Equity Fund Vi Investors (bkfs-nb), Llc 10 percent owner C/O THOMAS H. LEE PARNTERS, L.P. 100 FEDERAL STREET, 35TH FLOOR BOSTON MA 02110
Orefice Anthony officer: Chief Operating Officer C/O BLACK KNIGHT FINANCIAL SERVICES, INC 601 RIVERSIDE AVENUE JACKSONVILLE FL 32204
Sanzone Thomas J. officer: Chief Executive Officer BLACK KNIGHT FINANCIAL SERVICES, INC. 601 RIVERSIDE AVENUE JACKSONVILLE FL 32204
Thl Equity Fund Vi Investors (bkfs), L.p. 10 percent owner C/O THOMAS H. LEE PARNTERS, L.P. 100 FEDERAL STREET, 35TH FLOOR BOSTON MA 02110
Thl Equity Fund Vi Investors (bkfs) Ii, L.p. 10 percent owner C/O THOMAS H. LEE PARNTERS, L.P. 100 FEDERAL STREET, 35TH FLOOR BOSTON MA 02110
Thl Equity Fund Vi Investors (bkfs-lm), Llc 10 percent owner C/O THOMAS H. LEE PARNTERS, L.P. 100 FEDERAL STREET, 35TH FLOOR BOSTON MA 02110
Thomas H. Lee Parallel (dt) Fund Vi, L.p. 10 percent owner 100 FEDERAL STREET C/O THOMAS H. LEE PARTNERS, L.P. BOSTON MA 02110

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