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Braze (STU:K43) Financial Strength : 7 (As of Jan. 2024)


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What is Braze Financial Strength?

Braze has the Financial Strength Rank of 7.

Good Sign:

Braze Inc shows strong financial strength.

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 Braze's interest coverage with the available data. Braze's debt to revenue ratio for the quarter that ended in Jan. 2024 was 0.17. As of today, Braze's Altman Z-Score is 6.48.


Competitive Comparison of Braze's Financial Strength

For the Software - Application subindustry, Braze'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.


Braze's Financial Strength Distribution in the Software Industry

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

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



Braze 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:

Braze's Interest Expense for the months ended in Jan. 2024 was €0.0 Mil. Its Operating Income for the months ended in Jan. 2024 was €-29.6 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2024 was €68.9 Mil.

Braze's Interest Coverage for the quarter that ended in Jan. 2024 is

GuruFocus does not calculate Braze'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. Braze Inc has enough cash to cover all of its debt. Its financial situation is stable.

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

Braze's Debt to Revenue Ratio for the quarter that ended in Jan. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Jan. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(14.307 + 68.875) / 480.876
=0.17

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.

Braze has a Z-score of 6.48, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 6.48 is strong.

* 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.


Braze  (STU:K43) 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.

Braze has the Financial Strength Rank of 7.


Braze Financial Strength Related Terms

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


Braze (STU:K43) Business Description

Traded in Other Exchanges
Address
330 West 34th Street, Floor 18, New York, NY, USA, 10001
Braze Inc is a customer engagement platform that powers customer-centric interactions between consumers and brands. The company provides solutions for Retail & E-commerce, Media & Entertainment, Financial Services, and Travel & Hospitality related industries.

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