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Unity Software Financial Strength

: 5 (As of Jun. 2022)
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Unity Software 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.

Unity Software did not have earnings to cover the interest expense. Unity Software's debt to revenue ratio for the quarter that ended in Jun. 2022 was 1.53. As of today, Unity Software's Altman Z-Score is 3.79.


Competitive Comparison

For the Software - Application subindustry, Unity Software'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.

   

Unity Software Financial Strength Distribution

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

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



Unity Software 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:

Unity Software's Interest Expense for the months ended in Jun. 2022 was $-4 Mil. Its Operating Income for the months ended in Jun. 2022 was $-198 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $1,792 Mil.

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

Unity Software 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.

Unity Software'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
=(24.358 + 1791.904) / 1188.172
=1.53

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.

Unity Software has a Z-score of 3.79, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.79 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.


Unity Software  (NYSE:U) 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.

Unity Software has the Financial Strength Rank of 5.


Unity Software Financial Strength Related Terms

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


Unity Software Business Description

Unity Software logo
Traded in Other Exchanges
Address
30 3rd Street, San Francisco, CA, USA, 94103-3104
Unity Software Inc provides a software platform for creating and operating interactive, real-time 3D content. The platform can be used to create, run and monetize interactive, real-time 2D and 3D content for mobile phones, tablets, PCs, consoles, and augmented and virtual reality devices. The business is spread across the United States, Greater China, EMEA, APAC and Other Americas, of which key revenue is derived from the EMEA region. The products are used in the gaming industry, architecture and construction sector, animation industry, and designing sector.
Executives
Lee Michelle K. director C/O ALARM.COM HOLDINGS, INC. 8281 GREENSBORO DRIVE, SUITE 100 TYSONS VA 22102
Carpenter Carol W. officer: SVP & Chief Marketing Officer 1040 AVENUE OF THE AMERICAS 8TH FLOOR NEW YORK NY 10018
Sequoia Capital Fund Feeder, L.p. 10 percent owner 2800 SAND HILL ROAD SUITE 101 MENLO PARK CA 94025
Sequoia Capital Fund, L.p. 10 percent owner 2800 SAND HILL ROAD SUITE 101 MENLO PARK CA 94025
Riccitiello John S. director, officer: President and CEO 209 REDWOOD SHORES PARKWAY REDWOOD CITY CA 94065
Smith-jeremie Keisha director C/O UNITY SOFTWARE INC. 30 3RD STREET SAN FRANCISCO CA 94103
Sequoia Grove Ii, Llc 10 percent owner SEQUOIA CAPITAL 2800 SAND HILL ROAD, SUITE 101 MENLO PARK CA 94025
Sequoia Grove Manager, Llc 10 percent owner SEQUOIA CAPITAL 2800 SAND HILL ROAD, SUITE 101 MENLO PARK CA 94025
Helgason David director C/O UNITY SOFTWARE INC. 30 - 3RD STREET SAN FRANCISCO CA 94103
Otee 2020 Aps 10 percent owner C/O GRANT THORNTON, STOCKHOLMSGADE 45 COPENHAGEN O G7 2100
Whitten Marc officer: SVP & GM, Create Solutions C/O UNITY SOFTWARE INC. 30-3RD STREET SAN FRANCISCO CA 94103
Schuler Barry director C/O EDGAR ONLINE, INC. 50 WASHINGTON STREET NORWALK CT 06854
Ante Joachim Christoph 10 percent owner ISLANDS BRYGGE 9 COPENHAGEN S G7 2300
Keene Ruth Ann officer: SVP, CLO & GC & Corp Sec'y C/O UNITY SOFTWARE INC. 30 - 3RD STREET SAN FRANCISCO CA 94103
Slp Union Aggregator, L.p. director, 10 percent owner C/O SILVER LAKE 2776 SAND HILL ROAD, SUITE 100 MENLO PARK CA 94025

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