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Roblox Financial Strength

: 5 (As of Jun. 2022)
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Roblox 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.

Roblox did not have earnings to cover the interest expense. Roblox's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.61. As of today, Roblox's Altman Z-Score is 3.85.


Competitive Comparison

For the Electronic Gaming & Multimedia subindustry, Roblox'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.

   

Roblox Financial Strength Distribution

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

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



Roblox 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:

Roblox's Interest Expense for the months ended in Jun. 2022 was $-10 Mil. Its Operating Income for the months ended in Jun. 2022 was $-170 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $1,388 Mil.

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

Roblox 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.

Roblox'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
=(55.68 + 1388.121) / 2364.828
=0.61

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.

Roblox has a Z-score of 3.85, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.85 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.


Roblox  (NYSE:RBLX) 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.

Roblox has the Financial Strength Rank of 5.


Roblox Financial Strength Related Terms

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


Roblox Business Description

Roblox logo
Traded in Other Exchanges
Address
970 Park Place, San Mateo, CA, USA, 94403
Roblox operates an online video game platform that lets young gamers create, develop, and monetize games (or "experiences") for other players. The firm effectively offers its developers a hybrid of a game engine, publishing platform, online hosting and services, marketplace with payment processing, and social network. The platform is a closed garden that Roblox controls, earning revenue in multiple places while benefiting from outsourced game development. Unlike traditional video game publishers, Roblox is more focused on the creation of new tools and monetization techniques for its developers then creating new games or franchises. Roblox is increasingly focused on creating a "metaverse" that moves beyond games toward experiences like concerts, education, and even business management.
Executives
Gupta Deepika officer: Principal Accounting Officer C/O ROBLOX CORPORATION 970 PARK PLACE SAN MATEO CA 94403
Altos Ventures Management Inc. 10 percent owner 2882 SAND HILL ROAD, SUITE 100 MENLO PARK CA 94025
Mastantuono Gina director 237 PARK AVENUE 14TH FLOOR NEW YORK NY 10017
Bronstein Manuel officer: Chief Product Officer 970 PARK PLACE, SUITE 100 SAN MATEO CA 94403
Baszucki Gregory director 970 PARK PLACE SAN MATEO CA 94403
Altos Ventures Iv, L.p. 10 percent owner 2882 SAND HILL ROAD, SUITE 100 MENLO PARK CA 94025
Baszucki David director, 10 percent owner, officer: President & CEO 970 PARK PLACE SAN MATEO CA 94403
Donato Craig officer: Chief Business Officer 970 PARK PLACE SAN MATEO CA 94403
Reinstra Mark officer: Gen. Counsel & Secretary 970 PARK PLACE SAN MATEO CA 94403
Tolley Brett officer: Principal Accounting Officer 970 PARK PLACE SAN MATEO CA 94403
Sturman Daniel officer: Chief Technology Officer 970 PARK PLACE SAN MATEO CA 94403
Nam Hodong 10 percent owner 2882 SAND HILL ROAD, SUITE 100 MENLO PARK CA 94025
Kim Han 10 percent owner 2882 SAND HILL ROAD, SUITE 100 MENLO PARK CA 94025
Altos Hybrid 4 Gp, Llc 10 percent owner 2882 SAND HILL ROAD, SUITE 100 MENLO PARK CA 94025
Altos Hybrid 3 Gp, Llc 10 percent owner 2882 SAND HILL ROAD, SUITE 100 MENLO PARK CA 94025

Roblox Headlines

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