What is Coinbase Global Financial Strength?
Coinbase Global 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.
Coinbase Global's Interest Coverage for the quarter that ended in Jun. 2024 was 16.86.Coinbase Global's debt to revenue ratio for the quarter that ended in Jun. 2024 was 0.73.As of today, Coinbase Global's Altman Z-Score is 0.18.
Competitive Comparison of Coinbase Global's Financial Strength
For the Financial Data & Stock Exchanges subindustry, Coinbase 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.
Coinbase Global's Financial Strength Distribution in the Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Coinbase Global's Financial Strength distribution charts can be found below:
* The bar in red indicates where Coinbase Global's Financial Strength falls into.
Coinbase 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:
Coinbase Global's Interest Expense for the months ended in Jun. 2024 was $-21 Mil. Its Operating Income for the months ended in Jun. 2024 was $346 Mil. And its for the quarter that ended in Jun. 2024 was $4,228 Mil.
Coinbase Global's Interest Coverage for the quarter that ended in Jun. 2024 is
| Interest Coverage | = | -1 | * | Operating Income (Q: Jun. 2024 ) | / | Interest Expense (Q: Jun. 2024 ) |
| = | -1 | * | 345.755 | / | -20.507 | |
| = | 16.86 |
The higher the ratio, the stronger the company's financial strength is.
2. Debt to revenue ratio. The lower, the better.
Coinbase Global's Debt to Revenue Ratio for the quarter that ended in Jun. 2024 is
| Debt to Revenue Ratio | = | Total Debt (Q: Jun. 2024 ) | / | Revenue | ||
| = | ( | + | ) | / | Revenue | |
| = | (0 | + | 4228.019) | / | 5798.512 | |
| = | 0.73 |
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.
Coinbase Global has a Z-score of 0.18, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 0.18 is in distress zone. This implies bankruptcy possibility in the next two years.
* 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.
Coinbase Global(NAS:COIN) 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.
Coinbase Global has the Financial Strength Rank of 5.
Coinbase Global Financial Strength Related Terms
Thank you for viewing the detailed overview of Coinbase Global's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
Coinbase Global Business Description
Industry
GURUFOCUS.COM »STOCK LIST »Financial Services » Capital Markets » Coinbase Global Inc (NAS:COIN) » Definitions » Financial Strength
Comparable Companies
CBOE FDS NDAQ MORN DNB OTCM HNOI VALU QMCI MSCI SPGI CME ICE MCO LSE:LSEG HKSE:00388 SZSE:300059 XTER:DB1 BSP:B3SA3 TSE:8697
Traded in Other Exchanges
COIN:Mexico 1COIN:Italy 1QZ:Germany C2OI34:Brazil 1QZ:Bulgaria COIN:Austria
Address
c/o The Corporation Trust Company, 1209 Orange Street, Wilmington, DE, USA, 19801
Website
Founded in 2012, Coinbase is the leading cryptocurrency exchange platform in the United States. The company intends to be the safe and regulation-compliant point of entry for retail investors and institutions into the cryptocurrency economy. Users can establish an account directly with the firm, instead of using an intermediary, and many choose to allow Coinbase to act as a custodian for their cryptocurrency, giving the company breadth beyond that of a traditional financial exchange. While the company still generates the majority of its revenue from transaction fees charged to its retail customers, Coinbase uses internal investment and acquisitions to expand into adjacent businesses, such as prime brokerage and data analytics.
Executives
| Gokul Rajaram | director | 301 CONGRESS AVENUE, SUITE 700, AUSTIN TX 78701 |
| Ehrsam Frederick Ernest Iii | director | C/O COINBASE GLOBAL, INC., 100 PINE STREET, SUITE 1250, SAN FRANCISCO CA 94111 |
| Emilie Choi | officer: President | C/O COINBASE GLOBAL, INC., 100 PINE STREET, SUITE 1250, SAN FRANCISCO CA 94111 |
| Brian Armstrong | director, 10 percent owner, officer: Chairman and CEO | 100 PINE STREET, SUITE 1250, SAN FRANCISCO CA 94111 |
| Marc L Andreessen | director, 10 percent owner | C/O ARNOLD & PORTER LLP, 3 EMBARCADERO CENTER 7TH FLOOR, SAN FRANCISCO CA 94111 |
| Paul Grewal | officer: Chief Legal Officer | C/O COINBASE GLOBAL, INC., 100 PINE STREET, SUITE 1250, SAN FRANCISCO CA 94111 |
| Lawrence J Brock | officer: Chief People Officer | C/O COINBASE GLOBAL, INC., 248 3RD ST #434, OAKLAND CA 94607 |
| Alesia J Haas | officer: Chief Financial Officer | 3333 BEVERLY ROAD, HOFFMAN ESTATES IL 60179 |
| Kathryn Haun | director | C/O COINBASE GLOBAL, INC., 100 PINE STREET, SUITE 1250, SAN FRANCISCO CA 94111 |
| Jennifer N. Jones | officer: Chief Accounting Officer | C/O COINBASE GLOBAL, INC., 100 PINE STREET, SUITE 1250, SAN FRANCISCO CA 94111 |
| Tobias Lutke | director | C/O SHOPIFY INC., 150 ELGIN ST., 8TH FLOOR, OTTAWA A6 K2P 1L4 |
| Surojit Chatterjee | officer: Chief Product Officer | C/O COINBASE GLOBAL, INC., 100 PINE STREET, SUITE 1250, SAN FRANCISCO CA 94111 |
| Andreessen Horowitz Lsv Fund I-b, L.p. | 10 percent owner | 2865 SAND HILL ROAD, SUITE 101, MENLO PARK CA 94025 |
| Andreessen Horowitz Fund Iii, L.p. | 10 percent owner | 2865 SAND HILL ROAD, SUITE 101, MENLO PARK CA 94025 |
| Frederick R Wilson | director, 10 percent owner |
Coinbase Global Headlines
From GuruFocus
Insider Sell: Coinbase Global Inc's Chief Legal Officer Paul Grewal Disposes of 20,000 Shares
By GuruFocus Research • 12-22-2023
Coinbase Announces Date of Third Quarter 2023 Financial Results
By Business Wire • 10-06-2023
Coinbase Accelerates International Expansion with Official Launch in Canada
By Business Wire • 08-14-2023
Coinbase Global Inc (COIN) Reports Q3 2023 Earnings: Net Loss of $2 Million, Positive Adjusted EBITDA, and $5.5 Billion in USD Resources
By GuruFocus Research • 11-02-2023
Coinbase Global Inc Faces a 1.15% Impact in Catherine Wood's Latest Portfolio Adjustments
By GuruFocus Research • 01-18-2024
Thinking about trading options or stock in Qualcomm, Pfizer, Extreme Networks, ON Semiconductor, or Coinbase Global?
By PRNewswire • 01-09-2024
By Business Wire • 08-31-2023
By Business Wire • 08-03-2023
Insider Sell: Coinbase Global Inc's Chief Legal Officer Paul Grewal Sells 10,000 Shares
By GuruFocus Research • 12-07-2023
Coinbase Announces Final Results and Expiration of Cash Tender Offer for its Outstanding 3.625% Senior Notes Due 2031
By Business Wire • 09-19-2023
