GURUFOCUS.COM » STOCK LIST » USA » NYSE » Toast Inc (NYSE:TOST) » Definitions » Financial Strength
Switch to:

Toast Financial Strength

: 8 (As of Jun. 2022)
View and export this data going back to 2021. Start your Free Trial

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

Good Sign:

Toast Inc 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.

GuruFocus does not calculate Toast's interest coverage with the available data. Toast's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.03. As of today, Toast's Altman Z-Score is 10.31.


Competitive Comparison

For the Software - Infrastructure subindustry, Toast'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.

   

Toast Financial Strength Distribution

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

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



Toast 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:

Toast's Interest Expense for the months ended in Jun. 2022 was $0 Mil. Its Operating Income for the months ended in Jun. 2022 was $-99 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $78 Mil.

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

GuruFocus does not calculate Toast's interest coverage with the available data.

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

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

Toast'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
=(14 + 78) / 2700
=0.03

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.

Toast has a Z-score of 10.31, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 10.31 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.


Toast  (NYSE:TOST) 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.

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


Toast Financial Strength Related Terms

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


Toast Business Description

Toast logo
Traded in Other Exchanges
Address
401 Park Drive, Suite 801, Boston, MA, USA, 02215
Toast is a U.S.-based restaurant technology company that provides point-of-sale, payment processing, and various software services to 57,000 restaurant locations across the United States. The firm generates sales from software subscription fees, as a percentage take rate from each financial transaction it processes, and from hardware installation and professional services. Unlike competitors, Toast intermediates every payment transaction on its platform, processing some $57 billion in gross platform volume in 2021. The firm's product offerings span point-of-sale systems, inventory and payroll management, delivery integration, e-commerce ordering, and loyalty programs.
Executives
Grimm Jonathan 10 percent owner, officer: Chief Technology Officer TOAST, INC. 401 PARK DRIVE, SUITE 801 BOSTON MA 02215
Hmi Capital Partners, L.p. 10 percent owner C/O HMI CAPITAL, LLC 555 CALIFORNIA STREET, SUITE 4900 SAN FRANCISCO CA 94104
Hmi Capital Management, L.p. 10 percent owner 555 CALIFORNIA STREET SUITE 4900 SAN FRANCISCO CA 94104
Koplow Hilarie A. director C/O NEW RELIC, INC. 188 SPEAR STREET, STE. 1200 SAN FRANCISCO CA 94105
Matlock James Michael officer: Principal Accounting Officer TOAST, INC. 401 PARK DRIVE, SUITE 801 BOSTON MA 02215
Fmr Llc 10 percent owner, other: See Remark 1 245 SUMMER STREET BOSTON MA 02210
Tcv X Member Fund, L.p. other: May be part of a 13(d) group 250 MIDDLEFIELD ROAD MENLO PARK CA 94025
Technology Investment Dining Group, Llc 10 percent owner 18 BANK STREET LEBANON NH 03766
Bell Paul D director C/O DELL INC. ONE DELL WAY ROUND ROCK TX 78682-2244
Bessemer Venture Partners Century Fund Institutional L.p. 10 percent owner 1865 PALMER AVENUE SUITE 104 LARCHMONT NY 10538
Bessemer Venture Partners Century Fund L.p. 10 percent owner 1865 PALMER AVENUE SUITE 104 LARCHMONT NY 10538
Papa Steve 10 percent owner C/O DESKTOP METAL, INC. 63 THIRD AVENUE BURLINGTON MA 01803
Bennett Richard Kent director 1865 PALMER AVENUE SUITE 104 LARCHMONT NY 10538
Comparato Christopher P director, officer: Chief Executive Officer TOAST, INC. 401 PARK DRIVE, SUITE 801 BOSTON MA 02215
Fredette Stephen director, officer: Co-President TOAST, INC. 401 PARK DRIVE, SUITE 801 BOSTON MA 02215

Toast Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)