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UWM Holdings Financial Strength

: 2 (As of Mar. 2022)
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UWM Holdings has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

UWM Holdings Corp displays poor financial strength. Usually, this is caused by too much debt for the company.

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 UWM Holdings's interest coverage with the available data. UWM Holdings's debt to revenue ratio for the quarter that ended in Mar. 2022 was 2.24. Altman Z-Score does not apply to banks and insurance companies.


UWM Holdings 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:

UWM Holdings's Interest Expense for the months ended in Mar. 2022 was $-60 Mil. Its Operating Income for the months ended in Mar. 2022 was $0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2022 was $2,147 Mil.

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

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

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

UWM Holdings'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
=(4076.829 + 2147.061) / 2781.12
=2.24

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.

Altman Z-Score does not apply to banks and insurance companies.

* 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.


UWM Holdings  (NYSE:UWMC) 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.

UWM Holdings has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


UWM Holdings Financial Strength Related Terms

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


UWM Holdings Business Description

UWM Holdings logo
Traded in Other Exchanges
Address
585 South Boulevard East, Pontiac, MI, USA, 48341
UWM Holdings Corp engages in the origination, sale and servicing of residential mortgage loans. The company provides independent mortgage advisors across the states and the district of Columbia.
Executives
Mat Ishbia director, 10 percent owner, officer: President and CEO C/OUWM HOLDINGS CORPORATION 585 SOUTH BLVD E PONTIAC MI 48341
Elezaj Alex director, officer: EVP, Chief Strategy Officer C/OUWM HOLDINGS CORPORATION 585 SOUTH BLVD E PONTIAC MI 48341
Sfs Holding Corp director, 10 percent owner 585 SOUTH BLVD E PONTIAC MI 48341
Lawson Laura director, officer: EVP, Chief People Officer C/OUWM HOLDINGS CORPORATION 585 SOUTH BLVD E PONTIAC MI 48341
Verdun Robert director C/OUWM HOLDINGS CORPORATION 585 SOUTH BLVD E PONTIAC MI 48341
Hubacker Andrew officer: CAO C/OUWM HOLDINGS CORPORATION 585 SOUTH BLVD E PONTIAC MI 48341
Forrester Tim officer: EVP and CFO C/OUWM HOLDINGS CORPORATION 585 SOUTH BLVD E PONTIAC MI 48341
Wilner Melinda director, officer: EVP, COO C/OUWM HOLDINGS CORPORATION 585 SOUTH BLVD E PONTIAC MI 48341
Ishbia Justin director C/OUWM HOLDINGS CORPORATION 585 SOUTH BLVD E PONTIAC MI 48341
Ishbia Jeff director, 10 percent owner C/OUWM HOLDINGS CORPORATION 585 SOUTH BLVD E PONTIAC MI 48341
Czubak Kelly director C/OUWM HOLDINGS CORPORATION 585 SOUTH BLVD E PONTIAC MI 48341
Thomas Isiah Iii director TWO PENNSYLVANIA PLAZA NEW YORK NY 10121
Rea Jeffrey Gene director C/O STOCK BUILDING SUPPLY HOLDINGS, INC. 8020 ARCO CORPORATE DRIVE, SUITE 400 RALEIGH NC 27617
Gores Sponsor Iv Llc director, 10 percent owner 9800 WILSHIRE BLVD. BEVERLY HILLS CA 90212
Bort Randy director 1150 N. ALMA SCHOOL ROAD MESA AZ 85201
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