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Sea Financial Strength

: 5 (As of Mar. 2022)
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Sea 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.

Sea did not have earnings to cover the interest expense. Sea's debt to revenue ratio for the quarter that ended in Mar. 2022 was 0.44. As of today, Sea's Altman Z-Score is 2.65.


Competitive Comparison

For the Internet Retail subindustry, Sea'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.

   

Sea Financial Strength Distribution

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

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



Sea 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:

Sea's Interest Expense for the months ended in Mar. 2022 was $-12 Mil. Its Operating Income for the months ended in Mar. 2022 was $-498 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2022 was $4,901 Mil.

Sea's Interest Coverage for the quarter that ended in Mar. 2022 is

Sea 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.

Sea'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
=(228.862 + 4900.664) / 11598.284
=0.44

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.

Sea has a Z-score of 2.65, indicating it is in Grey Zones. This implies that Sea is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.65 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* 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.


Sea  (NYSE:SE) 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.

Sea has the Financial Strength Rank of 5.


Sea Financial Strength Related Terms

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


Sea Business Description

Sea logo
Address
1 Fusionopolis Place, No. 17-10, Galaxis, Singapore, SGP, 138522
Sea Ltd is an internet company. The company operates through three segments namely Digital entertainment, E-commerce, and Digital financial services. It generates maximum revenue from the Digital Entertainment segment. Digital Entertainment segment includes Garena's platform which offers mobile and PC online games across the region and develops mobile games for the global market. Garena is the global leader in eSports, it also provides access to other entertainment content and social features, such as live streaming of gameplay, user chat, and online forums. Geographically, it derives a majority of revenue from Southeast Asia and also has a presence in Latin America; the Rest of Aisa, and the Rest of the world.

Sea Headlines

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