Skillz (NYSE:SKLZ) Financial Strength

: 4 (As of Mar. 2023)

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Skillz 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.

Skillz did not have earnings to cover the interest expense. Skillz's debt to revenue ratio for the quarter that ended in Mar. 2023 was 1.62. As of today, Skillz's Altman Z-Score is -2.15.

Competitive Comparison

For the Electronic Gaming & Multimedia subindustry, Skillz'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.

Annual Data Quarterly Data

Skillz Financial Strength Distribution

For the Interactive Media industry and Communication Services sector, Skillz's Financial Strength distribution charts can be found below:

* The bar in red indicates where Skillz's Financial Strength falls in comparison to its industry or sector. The grey bar indicates the Financial Strength's extreme value range as defined by GuruFocus.

Skillz 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:

Skillz's Interest Expense for the months ended in Mar. 2023 was $-3.5 Mil. Its Operating Income for the months ended in Mar. 2023 was $-32.1 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2023 was $285.1 Mil.

Skillz's Interest Coverage for the quarter that ended in Mar. 2023 is

Skillz 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.

Skillz's Debt to Revenue Ratio for the quarter that ended in Mar. 2023 is

Debt to Revenue Ratio	=	Total Debt (Q: Mar. 2023 )			/	Revenue
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Revenue
	=	(3.281	+	285.129)	/	177.532
	=	1.62

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.

Skillz has a Z-score of -2.15, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of -2.15 is in distress zone. This implies bankruptcy possibility in the next two years.

* 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.

Skillz (NYSE:SKLZ) 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.

Skillz has the Financial Strength Rank of 4.

Skillz Financial Strength Related Terms

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

Skillz (NYSE:SKLZ) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Skillz Inc (NYSE:SKLZ) » Definitions » Financial Strength

Comparable Companies

Traded in Other Exchanges

SKLZ:Mexico

Address

P.O. Box 445, San francisco, CA, USA, 94104

Website

https://www.skillz.com

Skillz Inc is a mobile game development company. Its platform helps developers build multi-million dollar franchises by enabling social competition in their games.

Executives

Seth Schorr	director	PO BOX 445, SAN FRANCISCO CA 94104
Jason Roswig	officer: President & CFO	PO BOX 445, SAN FRANCISCO CA 94104
Henry M. Hoffman	director	PO BOX 445, SAN FRANCISCO CA 94104
Shari Glazer	director	PO BOX 445, SAN FRANCISCO CA 94104
Doris Fritz-bianchi	officer: Head of People	SKILLZ INC C/O CHARLOTTE EDELMAN, SAN FRANCISCO CA 94104
Vatsal Bhardwaj	officer: Chief Product Officer	SKILLZ INC C/O CHARLOTTE EDELMAN, SAN FRANCISCO CA 94104
Stanley Mbugua	officer: Chief Accounting Officer	SKILLZ INC, PO BOX 455, SAN FRAN CA 94104
Ian J Lee	officer: Chief Financial Officer	C/O SKILLZ INC., P.O. BOX 445, SAN FRANCISCO CA 94104-0445
Christopher S Gaffney	director	C/O GREAT HILL PARTNERS, L.P., 200 CLARENDON STREET, 29TH FLOOR, BOSTON MA 02116
Jerome Leon Bruckheimer	director	PHILPOTT MEEKS, 10030 VENTURA BOULEVARD, SUITE 380, ENCINO CA 91436
Scott D Henry	officer: Chief Financial Officer	3355 LAS VEGAS BOULEVARD SOUTH, LAS VEGAS NV 89109
Kent Wakeford	director	SKILLZ INC., C/O CHARLOTTE EDELMAN, P.O. BOX 445, SAN FRANCISCO CA 94104-0445
Vandana Mehta-krantz	director	SKILLZ INC., C/O CHARLOTTE EDELMAN, P.O. BOX 445, SAN FRANCISCO CA 94104-0445
Miriam Aguirre	officer: Chief Technology Officer	SKILLZ INC., C/O CHARLOTTE EDELMAN, P.O. BOX 445, SAN FRANCISCO CA 94104-0445
Favian Garcia	officer: Controller	SKILLZ INC., C/O CHARLOTTE EDELMAN, P.O. BOX 445, SAN FRANCISCO CA 94104-0445