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Coupang Financial Strength

: 6 (As of Jun. 2022)
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Coupang 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.

Coupang did not have earnings to cover the interest expense. Coupang's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.11. As of today, Coupang's Altman Z-Score is 4.23.


Competitive Comparison

For the Internet Retail subindustry, Coupang'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.

   

Coupang Financial Strength Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Coupang's Financial Strength distribution charts can be found below:

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



Coupang 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:

Coupang's Interest Expense for the months ended in Jun. 2022 was $-6 Mil. Its Operating Income for the months ended in Jun. 2022 was $-67 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $1,864 Mil.

Coupang's Interest Coverage for the quarter that ended in Jun. 2022 is

Coupang 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.

Coupang'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
=(355.807 + 1864.301) / 20151.284
=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.

Coupang has a Z-score of 4.23, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.23 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.


Coupang  (NYSE:CPNG) 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.

Coupang has the Financial Strength Rank of 6.


Coupang Financial Strength Related Terms

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


Coupang Business Description

Coupang logo
Traded in Other Exchanges
Address
570, Songpa-daero, Tower 730, Songpa-gu, Seoul, KOR, 05510
Coupang Inc is an e-commerce company. The company sells apparel, electronics, footwear, food products, furniture, nutritional supplements, and other products. Itss segments include Product Commerce and Growth Initiatives.
Executives
Sun Benjamin director C/O COUPANG, INC. TOWER 730, 570, SONGPA-DAERO, SONGPA-GU SEOUL M5 05510
Warsh Kevin M director 55 GLENLAKE PARKWAY, NE ATLANTA GA 30328
Child Jason director C/O SPLUNK INC. 270 BRANNAN ST. SAN FRANCISCO CA 94107
Pham Thuan officer: Chief Technology Officer 1455 MARKET STREET 4TH FLOOR SAN FRANCISCO CA 94103
Parker Michael officer: Chief Accounting Officer C/O COUPANG, INC. TOWER 730, 570, SONGPA-DAERO, SONGPA-GU SEOUL M5 05510
Franceschi Pedro director C/O COUPANG, INC. TOWER 730, 570, SONGPA-DAERO,SONGPA-GU SEOUL M5 05510
Sb Investment Advisers (uk) Ltd 10 percent owner 69 GROSVENOR STREET LONDON X0 W1K 3JP
Peretz Benjamin 10 percent owner, other: See Remarks 535 PACIFIC AVENUE 4TH FLOOR SAN FRANCISCO CA 94133
Greenoaks Capital Partners Llc director, 10 percent owner, other: See Remarks 535 PACIFIC AVENUE 4TH FLOOR SAN FRANCISCO CA 94133
Mehta Neil director, 10 percent owner 535 PACIFIC AVENUE 4TH FLOOR SAN FRANCISCO CA 94133
You Harry L. director EMC CORPORATION 176 SOUTH STREET HOPKINTON MA 01748
Kim Bom Suk director, 10 percent owner, officer: CEO and Chairman C/O COUPANG, INC. TOWER 730, 570, SONGPA-DAERO, SONGPA-GU SEOUL M5 05510
Jett Lydia director C/O COUPANG, INC. TOWER 730, 570, SONGPA-DAERO, SONGPA-GU SEOUL M5 05510
Svf Investments (uk) Ltd 10 percent owner 69 GROSVENOR STREET LONDON X0 W1K3JP
Kang Hanseung officer: Rep Director, Business Mngmt C/O COUPANG, INC. TOWER 730, 570, SONGPA-DAERO, SONGPA-GU SEOUL M5 05510

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