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Toast has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
Good Sign:
Toast 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.GuruFocus does not calculate Toast's interest coverage with the available data. Toast's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.01. As of today, Toast's Altman Z-Score is 10.99.
For the Software - Infrastructure subindustry, Toast'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.
For the Software industry and Technology sector, Toast's Financial Strength distribution charts can be found below:
* The bar in red indicates where Toast's Financial Strength falls into.
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:
Toast's Interest Expense for the months ended in Mar. 2024 was $0 Mil. Its Operating Income for the months ended in Mar. 2024 was $-15 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $30 Mil.
Toast's Interest Coverage for the quarter that ended in Mar. 2024 is
GuruFocus does not calculate Toast'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. Toast Inc has enough cash to cover all of its debt. Its financial situation is stable.
2. Debt to revenue ratio. The lower, the better.
Toast's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is
Debt to Revenue Ratio | = | Total Debt (Q: Mar. 2024 ) | / | Revenue | ||
= | (Short-Term Debt & Capital Lease Obligation | + | Long-Term Debt & Capital Lease Obligation) | / | Revenue | |
= | (11 | + | 30) | / | 4300 | |
= | 0.01 |
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.
Toast has a Z-score of 10.99, indicating it is in Safe Zones. This implies the Z-Score is strong.
Good Sign:
Altman Z-score of 10.99 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.
Toast (NYSE:TOST) 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.
Toast has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
Thank you for viewing the detailed overview of Toast's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
James Michael Matlock | officer: Principal Accounting Officer | TOAST, INC., 401 PARK DRIVE, BOSTON MA 02215 |
Brian R Elworthy | officer: General Counsel | TOAST, INC., 401 PARK DRIVE, BOSTON MA 02215 |
Aman Narang | director, officer: See Remarks | TOAST, INC., 401 PARK DRIVE, BOSTON MA 02215 |
Elena Gomez | officer: Chief Financial Officer | TOAST, INC., 401 PARK DRIVE, BOSTON MA 02215 |
Stephen Fredette | director, officer: Co-President | TOAST, INC., 401 PARK DRIVE, BOSTON MA 02215 |
Christopher P Comparato | director, officer: Chief Executive Officer | TOAST, INC., 401 PARK DRIVE, BOSTON MA 02215 |
Bessemer Venture Partners Ix L.p. | 10 percent owner | C/O BESSEMER VENTURE PARTNERS, 1865 PALMER AVENUE, SUITE 104, LARCHMONT NY 10538 |
David Yuan | director | 250 MIDDLEFIELD RD, MENLO PARK CA 94025 |
Mark J Hawkins | director | C/O LOGITECH, INC., 6505 KAISER DRIVE, FREMONT CA 94555 |
Richard Kent Bennett | director | 1865 PALMER AVENUE, SUITE 104, LARCHMONT NY 10538 |
Technology Investment Dining Group, Llc | 10 percent owner | 18 BANK STREET, LEBANON NH 03766 |
Jonathan Grimm | 10 percent owner, officer: Chief Technology Officer | TOAST, INC., 401 PARK DRIVE, SUITE 801, BOSTON MA 02215 |
Paul D Bell | director | C/O DELL INC., ONE DELL WAY, ROUND ROCK TX 78682-2244 |
Hmi Capital Management, L.p. | 10 percent owner | 555 CALIFORNIA STREET, SUITE 4900, SAN FRANCISCO CA 94104 |
Hmi Capital Partners, L.p. | 10 percent owner | C/O HMI CAPITAL MANAGEMENT, L.P., 555 CALIFORNIA STREET, SUITE 4900, SAN FRANCISCO CA 94104 |
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