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Udemy (NAS:UDMY) Financial Strength

: 7 (As of Sep. 2022)
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Udemy has the Financial Strength Rank of 7.

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 Udemy's interest coverage with the available data. Udemy's debt to revenue ratio for the quarter that ended in Sep. 2022 was 0.02. As of today, Udemy's Altman Z-Score is 2.47.


Udemy (NAS:UDMY) Financial Strength Competitive Comparison

For the Education & Training Services subindustry, Udemy'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.

   

Udemy (NAS:UDMY) Financial Strength Distribution

For the Education industry and Consumer Defensive sector, Udemy's Financial Strength distribution charts can be found below:

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



Udemy 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:

Udemy's Interest Expense for the months ended in Sep. 2022 was $0.0 Mil. Its Operating Income for the months ended in Sep. 2022 was $-43.3 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2022 was $8.0 Mil.

Udemy's Interest Coverage for the quarter that ended in Sep. 2022 is

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

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

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Udemy Inc has enough cash to cover all of its debt. Its financial situation is stable.

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

Udemy's Debt to Revenue Ratio for the quarter that ended in Sep. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(7.008 + 8.014) / 633.728
=0.02

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.

Udemy has a Z-score of 2.47, indicating it is in Grey Zones. This implies that Udemy 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 2.47 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.


Udemy  (NAS:UDMY) 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.

Udemy has the Financial Strength Rank of 7.


Udemy Financial Strength Related Terms

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


Udemy (NAS:UDMY) Business Description

Udemy logo
Traded in Other Exchanges
Address
600 Harrison Street, 3rd Floor, San Francisco, CA, USA, 94107
Udemy Inc operates a marketplace platform at the center of a vibrant knowledge network. The platform provides over 44 million learners with access to over 183,000 courses in 75 languages and over 180 countries.
Executives
Schechtman Natalie director 45 ROUND HOUSE ROAD BEDFORD NY 10506
Mih Edtech Investments B.v. 10 percent owner SYMPHONY OFFICES GUSTAV MAHLERPLEIN 5 AMSTERDAM P7 1082 MS
Prosus N.v. 10 percent owner SYMPHONY OFFICES GUSTAV MAHLERPLEIN 5 AMSTERDAM P7 1082 MS
Coccari Gregg director, officer: President, CEO and Chairperson 719 KINGMAN AVENUE SANTA MONICA CA 90402
Insight Partners Public Equities Gp 10 percent owner 1114 AVENUE OF THE AMERICAS, 36TH FLOOR NEW YORK NY 10036
Insight Venture Management, Llc 10 percent owner 1114 AVENUE OF THE AMERICAS, 36TH FLOOR NEW YORK NY 10036
Nvp Associates, Llc 10 percent owner 525 UNIVERSITY AVENUE SUITE 800 PALO ALTO CA 94301
Brown Gregory Scott officer: President, Udemy Business C/O BLACKHAWK NETWORK HOLDINGS, INC. 6220 STONERIDGE MALL ROAD PLEASANTON CA 94588
Illg Lawrence Charles director SYMPHONY OFFICES GUSTAV MAHLERPLEIN 5 AMSTERDAM P7 1082 MS
Gune Prasad officer: SVP, Product 600 HARRISON STREET, 3RD FLOOR SAN FRANCISCO CA 94107
Argerich Llibert officer: SVP, Marketing 600 HARRISON STREET, 3RD FLOOR SAN FRANCISCO CA 94107
Allamano Cara Brennan officer: SVP People, Places & Learning 600 HARRISON STREET, 3RD FLOOR SAN FRANCISCO CA 94107
Blanchard Sarah officer: Chief Financial Officer 600 HARRISON STREET, 3RD FLOOR SAN FRANCISCO CA 94107
Hiles Heather director 600 HARRISON STREET, 3RD FLOOR SAN FRANCISCO CA 94107
Paterson Lydia director 600 HARRISON STREET, 3RD FLOOR SAN FRANCISCO CA 94107

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