>
Switch to:

Youdao Financial Strength

: 3 (As of Jun. 2021)
View and export this data going back to 2019. Start your Free Trial

Youdao has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Youdao Inc displays poor financial strength. Usually this is caused by too much debt for the company.

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.

Youdao did not have earnings to cover the interest expense. Youdao's debt to revenue ratio for the quarter that ended in Jun. 2021 was 0.19. As of today, Youdao's Altman Z-Score is 0.56.


Competitive Comparison

For the Internet Content & Information subindustry, Youdao'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.

   

Youdao Financial Strength Distribution

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

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



Youdao 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:

Youdao's Interest Expense for the months ended in Jun. 2021 was $-1.2 Mil. Its Operating Income for the months ended in Jun. 2021 was $-84.7 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2021 was $14.6 Mil.

Youdao's Interest Coverage for the quarter that ended in Jun. 2021 is

Youdao 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.

Youdao's Debt to Revenue Ratio for the quarter that ended in Jun. 2021 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2021 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(136.65369649805 + 14.558443579767) / 805.23392996109
=0.19

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.

Youdao has a Z-score of 0.56, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.56 is in distress zone. This implies bankrupcy 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.


Youdao  (NYSE:DAO) 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.

Youdao has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Youdao Financial Strength Related Terms

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


Youdao Business Description

Youdao logo
Industry
Traded in Other Exchanges
Address
No. 399, Wangshang Road, Binjiang District, Hangzhou, CHN, 310051
Youdao Inc develops and markets software applications. It engages in developing technologies to provide learning content, applications, and solutions. The firm operates in three segments: Learning services, Learning products, and Online marketing services. Nearly half of its revenues come from the Learning services segment, which generates revenues from online courses, mainly including Youdao Premium Courses, NetEase Cloud Classroom, and China University MOOC. The learning products segment includes sales of smart devices such as Youdao Dictionary Pen and Youdao Pocket Translator. It generates revenues from the online marketing services through the provision of different formats of advertisement, including but not limited to banners, text links, videos, logos, buttons, and rich media.

Youdao Headlines

Other Sources

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)