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RELY (Remitly Global) Financial Strength : 8 (As of Sep. 2024)


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What is Remitly Global Financial Strength?

Remitly Global has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

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.

Remitly Global's Interest Coverage for the quarter that ended in Sep. 2024 was 0.48. Remitly Global's debt to revenue ratio for the quarter that ended in Sep. 2024 was 0.01. As of today, Remitly Global's Altman Z-Score is 6.21.


Competitive Comparison of Remitly Global's Financial Strength

For the Software - Infrastructure subindustry, Remitly Global'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.


Remitly Global's Financial Strength Distribution in the Software Industry

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

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



Remitly Global 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:

Remitly Global's Interest Expense for the months ended in Sep. 2024 was $-1 Mil. Its Operating Income for the months ended in Sep. 2024 was $0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was $6 Mil.

Remitly Global's Interest Coverage for the quarter that ended in Sep. 2024 is

Interest Coverage=-1*Operating Income (Q: Sep. 2024 )/Interest Expense (Q: Sep. 2024 )
=-1*0.368/-0.76
=0.48

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

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

Remitly Global's Debt to Revenue Ratio for the quarter that ended in Sep. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(7.914 + 5.77) / 1346.108
=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.

Remitly Global has a Z-score of 6.21, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 6.21 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.


Remitly Global  (NAS:RELY) 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.

Remitly Global has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.


Remitly Global Financial Strength Related Terms

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


Remitly Global Business Description

Traded in Other Exchanges
N/A
Address
1111 Third Avenue, Suite 2100, Seattle, WA, USA, 98101
Remitly Global Inc provides integrated financial services to immigrants, including helping customers send money internationally in a quick, reliable, and more cost-effective manner by leveraging digital channels. It supports cross-border transmissions across the globe. The company's revenue is generated on transaction fees charged to customers and foreign exchange spreads between the foreign exchange rate offered to customers and the foreign exchange rate on the company's currency purchases.
Executives
Joshua Hug director, officer: Chief Operating Officer 1111 THIRD AVENUE, ST. 2100, C/O REMITLY GLOBAL, INC., SEATTLE WA 98101
Matthew B. Oppenheimer director, officer: Chief Executive Officer 1111 THIRD AVENUE, ST. 2100, C/O REMITLY GLOBAL, INC., SEATTLE WA 98101
Gail A Miller officer: Chief Accounting Officer C/O REMITLY GLOBAL, INC., 1111 3RD AVE., 21ST FLOOR, SEATTLE, WA 98101
Rene Yoakum officer: EVP, Customer and Culture C/O REMITLY GLOBAL, INC., 1111 3RD AVE., 21ST FLOOR, SEATTLE WA 98101
Ankur Sinha officer: Chief Technology Officer C/O REMITLY GLOBAL, INC., 1111 3RD AVE., 21ST FLOOR, SEATTLE WA 98101
Hemanth Munipalli officer: Chief Financial Officer C/O REMITLY GLOBAL, INC., 1111 THIRD AVENUE, SUITE 2100, SEATTLE WA 98101
Bora Chung director C/O BILL.COM HOLDINGS, INC., 1810 EMBARCADERO ROAD, PALO ALTO CA 94303
Nigel W Morris director 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
Phyllis J Campbell director C/O AIR TRANSPORT SERVICES GROUP, INC., 145 HUNTER DRIVE, WILMINGTON OH 45177
Ryno Blignaut director C/O XOOM CORPORATION, 100 BUSH STREET, SUITE 300, SAN FRANCISCO CA 94104
Stripes Holdings, Llc 10 percent owner 402 WEST 13TH ST., 4TH FLOOR, NEW YORK NY 10014
Stripes Iii, Lp 10 percent owner 402 WEST 13TH STREET, 4TH FLOOR, NEW YORK NY 10014
Stripes Gp Iii, Llc 10 percent owner 402 WEST 13TH STREET, NEW YORK NY 10014
Kenneth A Fox 10 percent owner
William Kazuo Bryant director 1111 THIRD AVENUE, ST. 2100, C/O REMITLY GLOBAL, INC., SEATTLE WA 98101