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Wayfair Financial Strength

: 4 (As of Mar. 2022)
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Wayfair has the Financial Strength Rank of 4.

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.

Wayfair did not have earnings to cover the interest expense. Wayfair's debt to revenue ratio for the quarter that ended in Mar. 2022 was 0.33. As of today, Wayfair's Altman Z-Score is 2.80.


Competitive Comparison

For the Internet Retail subindustry, Wayfair'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.

   

Wayfair Financial Strength Distribution

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

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



Wayfair 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:

Wayfair's Interest Expense for the months ended in Mar. 2022 was $-8 Mil. Its Operating Income for the months ended in Mar. 2022 was $-310 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2022 was $3,935 Mil.

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

Wayfair 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.

Wayfair'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
=(0 + 3935) / 11972
=0.33

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.

Wayfair has a Z-score of 2.80, indicating it is in Grey Zones. This implies that Wayfair 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 2.8 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.


Wayfair  (NYSE:W) 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.

Wayfair has the Financial Strength Rank of 4.


Wayfair Financial Strength Related Terms

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


Wayfair Business Description

Wayfair logo
Traded in Other Exchanges
Address
4 Copley Place, Boston, MA, USA, 02116
Wayfair engages in e-commerce in the United States and Europe. At the end of 2021, the firm offered more than 33 million products from 23,000-plus suppliers for the home sector under the brands Wayfair, Joss & Main, AllModern, DwellStudio, Birch Lane, and Perigold. This includes a selection of furniture, decor, decorative accent, housewares, seasonal decor, and other home goods. Wayfair was founded in 2002 and is focused on helping people find the perfect product at the right price.
Executives
Tan Fiona officer: Chief Technology Officer 41 DISCOVERY IRVINE CA 92618
King Jeremy director C/O WAYFAIR LLC 4 COPLEY PLACE BOSTON MA 02116
Sneed Michael E director JOHNSON & JOHNSON ONE JOHNSON & JOHNSON PLAZA NEW BRUNSWICK NJ 08933
Choe Michael W. director C/O CHARLESBANK CAPITAL PARTNERS 200 CLARENDON STREET, 54TH FLOOR BOSTON MA 02109
Spruce House Partnership Llc 10 percent owner 435 HUDSON STREET 8TH FLOOR NEW YORK NY 10014
Spruce House Partnership (qp) Lp 10 percent owner 435 HUDSON ST #804 NEW YORK NY 10014
Stein Benjamin Forester 10 percent owner 435 HUDSON STREET SUITE 804 NEW YORK NY 10014
Sternberg Zachary 10 percent owner 435 HUDSON STREET SUITE 804 NEW YORK NY 10014
Spruce House Investment Management Llc 10 percent owner 435 HUDSON STREET 8TH FLOOR NEW YORK NY 10014
Spruce House Capital Llc 10 percent owner 435 HUDSON STREET SUITE 804 NEW YORK NY 10014
Spruce House Partnership (ai) Lp 10 percent owner 435 HUDSON STREET 8TH FLOOR NEW YORK NY 10014
Schaferkordt Anke director C/O WAYFAIR INC. 4 COPLEY PLACE BOSTON MA 02116
Netzer Thomas officer: Chief Operating Officer C/O WAYFAIR INC. 4 COPLEY PLACE BOSTON MA 02116
Jung Andrea director C/O APPLE INC ONE APPLE PARK WAY CUPERTINO CA 95014
Naylor Jeffrey G director

Wayfair Headlines

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