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Clarivate Financial Strength

: 4 (As of Mar. 2022)
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Clarivate 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.

Clarivate's Interest Coverage for the quarter that ended in Mar. 2022 was 0.61. Clarivate's debt to revenue ratio for the quarter that ended in Mar. 2022 was 2.11. As of today, Clarivate's Altman Z-Score is 0.65.


Competitive Comparison

For the Information Technology Services subindustry, Clarivate'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.

   

Clarivate Financial Strength Distribution

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

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



Clarivate 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:

Clarivate's Interest Expense for the months ended in Mar. 2022 was $-60 Mil. Its Operating Income for the months ended in Mar. 2022 was $36 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2022 was $5,541 Mil.

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

Interest Coverage=-1*Operating Income (Q: Mar. 2022 )/Interest Expense (Q: Mar. 2022 )
=-1*36.2/-59.5
=0.61

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

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

Clarivate'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
=(61.1 + 5541.1) / 2648.8
=2.11

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.

Clarivate has a Z-score of 0.65, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.65 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.


Clarivate  (NYSE:CLVT) 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.

Clarivate has the Financial Strength Rank of 4.


Clarivate Financial Strength Related Terms

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


Clarivate Business Description

Clarivate logo
Traded in Other Exchanges
Address
160 Blackfriars Roads, Friars House, London, GBR, SE1 8EZ
Clarivate PLC is an information service and analytics company serving the scientific research, intellectual property, and life sciences end-markets. It operates in two segments: Science and Intellectual Property(IP). The Science segment provides structured information that is delivered and embedded into the workflows of the company's customers. The IP segment help and manage customers an end-to-end portfolio of intellectual property from patents to trademarks to corporate website domains. The company's brand portfolio includes Web of Science, Derwent, Cortellis, DRG, CompuMark, MarkMonitor, and CPA Global. Its geographical segments are the Americas, Europe/Middle East/Africa, and Asia-Pacific.
Executives
Maestri Stefano officer: Chief Technology Officer 70 ST MARY AXE LONDON X0 EC3 8BA
Collins Jonathan Mark officer: Executive Vice President/CFO 50196 VENICE COURT NORTHVILLE MI 48168
Angelakis Michael J director 40 MORRIS AVENUE BRYN MAWR PA 19010
Snyder Andrew Miles director 111 WEST 57TH STREET 9TH FLOOR NEW YORK NY 10019
Matzke-hamlin Heather officer: Acting Chief Acctg Officer 4TH FLOOR, ROPEMAKER PLACE 25 ROPEMAKER STREET LONDON X0 EC2Y 9LY
Lomholt-thomsen Steen officer: Chief Revenue Officer FRIARS HOUSE, 160 BLACKFRIARS ROAD LONDON X0 SE1 8EZ
Samson James Gordon officer: President, IP Group FRIARS HOUSE 160 BLACKFRIARS ROAD LONDON X0 SE 1 8EZ
Chahal Jaspal officer: Chief Legal Officer & GC C/O IHS INC. 15 INVERNESS EAST WAY ENGLEWOOD CO 80107
Alberola Valeria director FRIARS HOUSE, 160 BLACKFRIARS ROAD LONDON X0 SE1 8EZ
White Roxane director FRIARS HOUSE, 160 BLACKFRIARS ROAD LONDON X0 SE1 8EZ
Wilson Julie M officer: Chief People Officer
Schwartz Gerald W 10 percent owner
Onex Partners Iv Gp Ltd 10 percent owner C/O WALKERS CORPORATE LIMITED CAYMAN CORPORATE CENTRE, 27 HOSPITAL RD. GEORGE TOWN, GRAND CAYMAN E9 KY1-9008
Onex Partners Iv Gp Lp 10 percent owner C/O WALKERS CORPORATE LIMITED CAYMAN CORPORATE CENTRE, 27 HOSPITAL RD. GEORGE TOWN, GRAND CAYMAN E9 KY1-9008
Onex Partners Iv Gp Llc 10 percent owner C/O ONEX PARTNERS MANAGER LP 712 FIFTH AVENUE, 40TH FLOOR NEW YORK NY 10019

Clarivate Headlines

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