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Dynatrace Financial Strength

: 7 (As of Jun. 2022)
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Dynatrace has the Financial Strength Rank of 7.

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.

Dynatrace's Interest Coverage for the quarter that ended in Jun. 2022 was 8.77. Dynatrace's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.28. As of today, Dynatrace's Altman Z-Score is 7.19.


Competitive Comparison

For the Software - Application subindustry, Dynatrace'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.

   

Dynatrace Financial Strength Distribution

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

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



Dynatrace 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:

Dynatrace's Interest Expense for the months ended in Jun. 2022 was $-2.2 Mil. Its Operating Income for the months ended in Jun. 2022 was $19.1 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $291.1 Mil.

Dynatrace'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*19.084/-2.175
=8.77

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

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

Dynatrace'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
=(12.402 + 291.109) / 1069.092
=0.28

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.

Dynatrace has a Z-score of 7.19, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 7.19 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.


Dynatrace  (NYSE:DT) 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.

Dynatrace has the Financial Strength Rank of 7.


Dynatrace Financial Strength Related Terms

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


Dynatrace Business Description

Dynatrace logo
Traded in Other Exchanges
N/A
Address
1601 Trapelo Road, Suite 116, Waltham, MA, USA, 02451
Dynatrace is a cloud-native company that focuses on analyzing machine data. Its product portfolio, delivered as software as a service, allows a client to monitor and analyze its entire IT infrastructure. Dynatrace's platform can ingest and analyze large amounts of machine-generated data in real time, allowing clients to use it for a variety of applications throughout their businesses.
Executives
Allen Alicia officer: Chief Accounting Officer C/O DYNATRACE, INC. 1601 TRAPELO ROAD SUITE 116 WALTHAM MA 02451
Gadre Ambika director C/O DYNATRACE, INC. 1601 TRAPELO ROAD SUITE 116 WALTHAM MA 02451
Mcconnell Rick M director, officer: Chief Executive Officer LATITUDE 2121 TASMAN DRIVE SANTA CLARA CA 4089887256
Rowland Stephen Eric director 1601 TRAPELO ROAD SUITE 116 WALTHAM MA 02451
Wolberg Kirsten O. director 900 NORTH MCCARTHY BLVD MILPITAS CA 95035
Thoma Bravo Ugp, Llc 10 percent owner 150 NORTH RIVERSIDE PLAZA, SUITE 2800 CHICAGO IL 60606
Ward Jill A director C/O FLEETMATICS 1100 WINTER STREET, SUITE 4600 WALTHAM MA 02451
Greifeneder Bernd officer: SVP, Chief Technology Officer C/O DYNATRACE HOLDINGS LLC 1601 TRAPELO ROAD, SUITE 116 WALTHAM MA 02451
Capone Michael L director C/O DYNATRACE HOLDINGS LLC 1601 TRAPELO ROAD, SUITE 116 WALTHAM MA 02451
Thoma Bravo Special Opportunities Fund I Aiv, L.p. 10 percent owner 150 NORTH RIVERSIDE PLAZA, SUITE 2800 CHICAGO IL 60606
Thoma Bravo Partners X, L.p. 10 percent owner 150 NORTH RIVERSIDE PLAZA, SUITE 2800 CHICAGO IL 60606
Thoma Bravo Special Opportunities Fund I, L.p. 10 percent owner 300 NORTH LASALLE STREET, SUITE 4350 CHICAGO IL 60654
Thoma Bravo Fund X-a, L.p. 10 percent owner 300 NORTH LASALLE STREET, SUITE 4350 CHICAGO IL 60654
Thoma Bravo Fund X, L.p. 10 percent owner 300 NORTH LASALLE STREET, SUITE 4350 CHICAGO IL 60654
Pace Stephen J. officer: SVP, Worldwide Sales C/O DYNATRACE HOLDINGS LLC 1601 TRAPELO ROAD SUITE 116 WALTHAM MA 02451

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