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Compass Financial Strength

: 6 (As of Mar. 2022)
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Compass has the Financial Strength Rank of 6.

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.

Compass did not have earnings to cover the interest expense. Compass's debt to revenue ratio for the quarter that ended in Mar. 2022 was 0.11. As of today, Compass's Altman Z-Score is 3.06.


Competitive Comparison

For the Software - Application subindustry, Compass'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.

   

Compass Financial Strength Distribution

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

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



Compass 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:

Compass's Interest Expense for the months ended in Mar. 2022 was $-1 Mil. Its Operating Income for the months ended in Mar. 2022 was $-186 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2022 was $498 Mil.

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

Compass 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.

Compass'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
=(116.1 + 497.6) / 5588
=0.11

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.

Compass has a Z-score of 3.06, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.06 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.


Compass  (NYSE:COMP) 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.

Compass has the Financial Strength Rank of 6.


Compass Financial Strength Related Terms

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


Compass Business Description

Compass logo
Traded in Other Exchanges
Address
90 Fifth Avenue, 3rd Floor, New York, NY, USA, 10011
Compass Inc provides an end-to-end platform that empowers residential real estate agents to deliver exceptional service to clients. The platform includes an integrated suite of cloud-based software for customer relationship management, marketing, client service and other critical functionality, all custom-built for the real estate industry and enabling core brokerage services. Business operations are conducted in the United States and earn revenue domestically.
Executives
Leinwand Allan director C/O MARIN SOFTWARE INCORPORATED 123 MISSION STREET, 25TH FLOOR SAN FRANCISCO CA 94105
Mccarter Josh N. director C/O COMPASS, INC. 90 5TH AVENUE, 3RD FLOOR NYC NY 10011
Singh Priyanka officer: Chief People Officer C/O COMPASS, INC. 90 5TH AVENUE, 3RD FLOOR NEW YORK NY 10011
Martell Frank director 10 GASTON FARMS ROAD GREENWICH CT 06831
Sordello Steven J director C/O LINKEDIN CORPORATION 2029 STIERLIN COURT MOUNTAIN VIEW CA 94043
Mehta Anand officer: Chief People Officer C/O COMPASS, INC. 90 5TH AVE, 3RD FLOOR NEW YORK NY 10011
Ankerbrandt Kristen M. officer: Chief Financial Officer C/O COMPASS, INC. 155 AVENUE OF THE AMERICAS, SIXTH FLOOR NEW YORK NY 10013
Hart Gregory M. officer: Chief Product Officer C/O COMPASS, INC. 155 AVENUE OF THE AMERICAS, SIXTH FLOOR NEW YORK NY 10013
Lehman Robert S. officer: Chief Business Officer C/O COMPASS, INC. 155 AVENUE OF THE AMERICAS, SIXTH FLOOR NEW YORK NY 10013
Wilkie Danielle J. officer: President, Central Region C/O COMPASS, INC. 155 AVENUE OF THE AMERICAS, SIXTH FLOOR NEW YORK NY 10013
Reffkin Robert L. director, officer: Chairman and CEO C/O COMPASS, INC. 155 AVENUE OF THE AMERICAS, SIXTH FLOOR NEW YORK NY 10013
Lane Kamini R. officer: President, West Region C/O COMPASS, INC. 90 5TH AVE, 3RD FLOOR NEW YORK NY 10011
Navab Neda officer: President, East Region C/O COMPASS, INC. 155 AVENUE OF THE AMERICAS, SIXTH FLOOR NEW YORK NY 10013
Sirosh Joseph officer: Chief Technology Officer C/O COMPASS, INC. 155 AVENUE OF THE AMERICAS, SIXTH FLOOR NEW YORK NY 10013
Wahlers Scott R. officer: Chief Accounting Officer 155 AVENUE OF THE AMERICAS SIXTH FLOOR NEW YORK NY 10013

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