Lemonade (Lemonade) Financial Strength : 5 (As of Dec. 2023)

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What is Lemonade Financial Strength?

Lemonade 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.

Lemonade did not have earnings to cover the interest expense. Lemonade's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.09. Altman Z-Score does not apply to banks and insurance companies.

Lemonade 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:

Lemonade's Interest Expense for the months ended in Dec. 2023 was $-1.2 Mil. Its Operating Income for the months ended in Dec. 2023 was $0.0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $43.1 Mil.

Lemonade's Interest Coverage for the quarter that ended in Dec. 2023 is

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

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

Lemonade's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio	=	Total Debt (Q: Dec. 2023 )			/	Revenue
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Revenue
	=	(0	+	43.1)	/	462
	=	0.09

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.

Lemonade (NYSE:LMND) 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.

Lemonade has the Financial Strength Rank of 5.

Lemonade Financial Strength Related Terms

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Lemonade (Lemonade) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Lemonade Inc (NYSE:LMND) » Definitions » Financial Strength

Comparable Companies

Traded in Other Exchanges

LMND:Mexico LE0:Germany

Address

5 Crosby Street, 3rd Floor, New York, NY, USA, 10013

Website

https://www.lemonade.com

Lemonade Inc operates in the insurance industry. The company offers digital and artificial intelligence based platform for various insurances and for settling claims and paying premiums. The platform ensures transparency in issuing policies and settling disputes. Geographically, it operates in California, Texas, New York, New Jersey, Illinois, Georgia, Washington, Colorado, Pennsylvania, Virginia and others.

Executives

John Sheldon Peters	officer: Chief Insurance Officer	C/O LEMONADE, INC., 5 CROSBY STREET, 3RD FLOOR, NEW YORK NY 10013
Timothy E Bixby	officer: Chief Financial Officer	C/O SHUTTERSTOCK, 350 FIFTH AVENUE, 21ST FLOOR, NEW YORK NY 10118
Alex Clavel	10 percent owner	PO BOX 1093, BOUNDARY HALL, CRICKET SQUARE, GRAND CAYMAN E9 KY1-1102
Michael A Eisenberg	director, 10 percent owner	C/O SHOPPING.COM, 8000 MARINA BLVD. 5TH FLOOR, BRISBANE CA 94005
Adina Eckstein	officer: Chief Operating Officer	C/O LEMONADE, INC., 5 CROSBY STREET, 3RD FLOOR, NEW YORK NY 10013
Irina Novoselsky	director	C/O LEMONADE, INC., 5 CROSBY STREET, 3RD FLOOR, NEW YORK NY 10013
Silvija Martincevic	director	C/O AFFIRM HOLDINGS, INC., 650 CALIFORNIA STREET, SAN FRANCISCO CA 94108
Becker Caryn Seidman	director	65 EAST 55TH STREET, 17TH FLOOR, NEW YORK NY 10022
Jorge Espinel	officer: CBDO	C/O LEMONADE, INC., 5 CROSBY STREET, 3RD FLOOR, NEW YORK NY 10013
George Thompson Hutton	director	C/O WHITE MOUNTAINS INSURANCE GROUP, LTD, 80 SOUTH MAIN STREET, HANOVER NH 03755
Joel E Cutler	director	C/O GENERAL CATALYST PARTNERS, 20 UNIVERSITY ROAD, SUITE 450, CAMBRIDGE MA 02138
Daniel A. Schreiber	director, 10 percent owner, officer: Co-Founder & CEO	C/O LEMONADE, INC., 5 CROSBY STREET, 3RD FLOOR, NEW YORK NY 10013
Shai Wininger	director, 10 percent owner, officer: See Remarks	C/O LEMONADE, INC., 5 CROSBY STREET, 3RD FLOOR, NEW YORK NY 10013
Haim Sadger	director	C/O SEQUOIA CAPITAL, 2800 SAND HILL RD, SUITE 101, MENLO PARK CA 94025
Sequoia Capital Israel Venture V Principals Fund, L.p.	10 percent owner	2800 SAND HILL RD, SUITE 101, MENLO PARK CA 94025