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On Holding AG Financial Strength

: 8 (As of Mar. 2022)
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On Holding AG has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

On Holding AG shows strong financial strength.

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.

On Holding AG's Interest Coverage for the quarter that ended in Mar. 2022 was 2.25. On Holding AG's debt to revenue ratio for the quarter that ended in Mar. 2022 was 0.00. As of today, On Holding AG's Altman Z-Score is 10.25.


Competitive Comparison

For the Apparel Retail subindustry, On Holding AG'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.

   

On Holding AG Financial Strength Distribution

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

* The bar in red indicates where On Holding AG's Financial Strength falls into.



On Holding AG 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:

On Holding AG's Interest Expense for the months ended in Mar. 2022 was $-1.6 Mil. Its Operating Income for the months ended in Mar. 2022 was $3.6 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2022 was $0.0 Mil.

On Holding AG'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*3.6270712287497/-1.612868517323
=2.25

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

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

On Holding AG'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
=(0 + 0) / 1014.3361308371
=0.00

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.

On Holding AG has a Z-score of 10.25, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 10.25 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.


On Holding AG  (NYSE:ONON) 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.

On Holding AG has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.


On Holding AG Financial Strength Related Terms

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On Holding AG Business Description

On Holding AG logo
Traded in Other Exchanges
N/A
Address
Pfingstweidstrasse 106, Zurich, CHE, 8005
On Holding AG is a premium performance sports brand rooted in technology, design, and impact. Its shoe, apparel, and accessories products are designed primarily for athletic use, casual, or leisure purposes. It does not manufacture the products or the raw materials and rely instead on third-party suppliers and contract manufacturers.

On Holding AG Headlines

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