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H&R Block Financial Strength

: 5 (As of Mar. 2022)
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H&R Block has the Financial Strength Rank of 5.

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.

H&R Block's Interest Coverage for the quarter that ended in Mar. 2022 was 37.28. H&R Block's debt to revenue ratio for the quarter that ended in Mar. 2022 was 0.29. As of today, H&R Block's Altman Z-Score is 3.63.


Competitive Comparison

For the Personal Services subindustry, H&R Block'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.

   

H&R Block Financial Strength Distribution

For the Personal Services industry and Consumer Cyclical sector, H&R Block's Financial Strength distribution charts can be found below:

* The bar in red indicates where H&R Block's Financial Strength falls into.



H&R Block 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:

H&R Block's Interest Expense for the months ended in Mar. 2022 was $-24 Mil. Its Operating Income for the months ended in Mar. 2022 was $885 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2022 was $1,697 Mil.

H&R Block'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*885.365/-23.746
=37.28

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

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

H&R Block'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
=(686.658 + 1697.396) / 8247.028
=0.29

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.

H&R Block has a Z-score of 3.63, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.63 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.


H&R Block  (NYSE:HRB) 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.

H&R Block has the Financial Strength Rank of 5.


H&R Block Financial Strength Related Terms

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


H&R Block Business Description

H&R Block logo
Traded in Other Exchanges
Address
One H&R Block Way, Kansas City, MO, USA, 64105
H&R Block Inc provides income tax return preparation services, digital do-it-yourself tax solutions, and other services related to income tax preparation to the general public primarily in the United States, Canada, and Australia. The company mainly prepares tax returns for customers within the United States through its company-owned offices, franchise locations, and online tax software. The vast majority of H&R Block's offices are located in the U.S. The company derives most of its total revenue from the U.S. assisted tax preparation fees. Revenue from franchise and product royalties and digital do-it-yourself tax solutions is also relatively significant.
Executives
Redler Dara S officer: Chief Legal Officer ONE H&R BLOCK WAY KANSAS CITY MO 64105
Mends Mia director 5254 BIRDWOOD ROAD HOUSTON TX 77096
Cohan Sean director 675 SIXTH AVENUE 3RD FLOOR NEW YORK NY 10011
Piazza Yolande G director 111 8TH AVENUE NEW YORK NY 10011
Gupta Anuradha director 564 PACIFIC AVENUE SAN FRANCISCO CA 94133
Orosco Karen A officer: SVP, U.S. Retail ONE H&R BLOCK WAY KANSAS CITY MO 64105
Winter Matthew E director 2775 SANDERS ROAD NORTHBROOK IL 60062
Jones Jeffrey J Ii officer: President & CEO - Designate ONE H&R BLOCK WAY KANSAS CITY MO 64105
Logerwell Kellie J officer: VP & Chief Acct Officer ONE H&R BLOCK WAY KANSAS CITY MO 64105
Collins Kathryn M officer: SVP & Chief Marketing Office ONE H&R BLOCK WAY KANSAS CITY MO 64105
Bowen Tony G officer: Chief Financial Officer ONE H&R BLOCK WAY KANSAS CITY MO 64105
Archon Angela N director 294 ROUTE 100 BUILDING 1 SOMERS NY 10589
Johnson Richard A director FOOT LOCKER, INC. 112 WEST 34TH STREET NEW YORK NY 10120
Knight Delos (kip) L Iii officer: President, Int'l & Franchise ONE H&R BLOCK WAY KANSAS CITY MO 64105
Macfarlane Gregory J officer: Chief Financial Officer H&R BLOCK ONE H&R BLOCK WAY KANSAS CITY MO 64105

H&R Block Headlines

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