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Euronet Worldwide (Euronet Worldwide) Financial Strength

: 6 (As of Dec. 2023)
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Euronet Worldwide has the Financial Strength Rank of 6.

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.

Euronet Worldwide's Interest Coverage for the quarter that ended in Dec. 2023 was 5.90. Euronet Worldwide's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.53. As of today, Euronet Worldwide's Altman Z-Score is 2.17.


Competitive Comparison

For the Software - Infrastructure subindustry, Euronet Worldwide'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.


Euronet Worldwide Financial Strength Distribution

For the Software industry and Technology sector, Euronet Worldwide's Financial Strength distribution charts can be found below:

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



Euronet Worldwide 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:

Euronet Worldwide's Interest Expense for the months ended in Dec. 2023 was $-17 Mil. Its Operating Income for the months ended in Dec. 2023 was $97 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $1,811 Mil.

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

Interest Coverage=-1*Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*97.4/-16.5
=5.90

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

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

Euronet Worldwide'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
=(202.2 + 1811.2) / 3830.8
=0.53

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.

Euronet Worldwide has a Z-score of 2.17, indicating it is in Grey Zones. This implies that Euronet Worldwide 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 2.17 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.


Euronet Worldwide  (NAS:EEFT) 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.

Euronet Worldwide has the Financial Strength Rank of 6.


Euronet Worldwide Financial Strength Related Terms

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


Euronet Worldwide (Euronet Worldwide) Business Description

Traded in Other Exchanges
Address
11400 Tomahawk Creek Parkway, Suite 300, Leawood, KS, USA, 66211
Euronet Worldwide Inc is a provider of electronic financial transaction solutions. The company operates an independent network of ATMs in Europe, along with a network for prepaid products such as mobile top-ups, and processes point-of-sale transactions. Euronet Worldwide also offers global money transfers, payment services and software, banking services, credit and debit card outsourcing services, and card issuing and merchant acquiring services. The largest segment by operating income, electronical financial transaction processing, mainly generates revenue from monthly ATM management fees and currency conversion transactions. The largest country by revenue is the United States of America.
Executives
Michael J Brown director, officer: CEO & President C/O EURONET WORLDWIDE, INC., 11400 TOMAHAWK CREEK PARKWAY, SUITE 300, LEAWOOD KS 66211
Fentanes Ligia Torres director 11400 TOMAHAWK CREEK PARKWAY, SUITE 300, LEAWOOD KS 66211
M Jeannine Strandjord director
Andrej Olechowski director WIERETNICZA 51, WARSAW POLAND R9 92200
Juan Bianchi officer: Executive Vice President C/O EURONET WORLDWIDE, INC., 11400 TOMAHAWK CREEK PARKWAY, SUITE 300, LEAWOOD KS 66211
Rick Weller officer: Chief Financial Officer/ EVP C/O EURONET WORLDWIDE, INC, 11400 TOMAHAWK CREEK PARKWAY, SUITE 300, LEADWOOD KS 66211
Michael N Frumkin director C/O EURONET WORLDWIDE, INC., 11400 TOMAHAWK CREEK PARKWAY, SUITE 300, LEAWOOD KS 66211
Scott Claassen officer: General Counsel and Secretary C/O EURONET WORLDWIDE, INC., 11400 TOMAHAWK CREEK PARKWAY, SUITE 300, LEAWOOD KS 66211
Jeffrey B Newman officer: Exec VP and General Counsel C/O EURONET WORLDWIDE, INC., 3500 COLLEGE BOULEVARD, LEAWOOD KS 66211
Martin L. Bruckner officer: SVP - Chief Technology Officer C/O EURONET WORLDWIDE, INC., 11400 TOMAHAWK CREEK PARKWAY, SUITE 300, LEAWOOD KS 66211
Nikos Fountas officer: Managing Director EMEA EFT Div C/O EURONET WORLDWIDE, INC., 11400 TOMAHAWK CREEK PARKWAY, SUITE 300, LEAWOOD KS 66211
Kevin J Caponecchi officer: President C/O EURONET WORLDWIDE, INC, 11400 TOMAHAWK CREEK PARKWAY, SUITE 300, LEAWOOD KS 66211
Eriberto R Scocimara director C/O QUAKER FABRIC CORP, 941 GRINNELL ST, FALL RIVER MA 02726
Mark R Callegari director C/O EURONET WORLDWIDE, INC., 11400 TOMAHAWK CREEK PARKWAY, SUITE 300, LEAWOOD KS 66211
Andrew B Schmitt director 1900 SHAWNEE MISSION PKWY, MISSION WOODS KS 66205