Insider analysis reveals Upstart Holdings’ financial health through ratios

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Upstart Holdings ($NASDAQ:UPST) Inc. is a technology company that utilizes artificial intelligence and machine learning to improve the loan underwriting process. When analyzing a company’s financial health, ratios can be a powerful tool. They allow us to assess a company’s performance, profitability, and efficiency by comparing different financial elements within the company. This means that the company can easily cover its short-term liabilities with its current assets. These liquidity ratios indicate that the company is in good financial health and has sufficient liquidity to support its operations. This is a positive aspect as it means that the company has lower financial risk and is not heavily reliant on debt. With a current ratio and quick ratio above 2 and a low debt-to-equity ratio, Upstart Holdings has a strong financial position and can easily manage its debt obligations. In conclusion, our analysis of Upstart Holdings’ financial health through ratios reveals that the company is in a strong financial position. With high liquidity, profitability, and low leverage, the company has a solid foundation for future growth and success. As always, it is important to consider other factors such as market conditions and industry trends when making investment decisions.

However, based on our insider analysis, Upstart Holdings appears to be a promising company with a healthy financial state.

Market Price

On Wednesday, UPSTART HOLDINGS‘ stock opened at $52.89 and closed at $54.38, showing a 2.78% increase from its previous closing price of $52.91. This boost in stock price may have caught the attention of investors and analysts, prompting them to further examine the company’s financial health. One way to analyze a company’s financial health is through the use of financial ratios. These ratios provide insights into a company’s liquidity, profitability, and overall performance. By looking at UPSTART HOLDINGS’ financial ratios, analysts can gain a better understanding of the company’s financial standing. One important ratio to consider is the quick ratio, also known as the acid-test ratio. This ratio measures a company’s ability to meet its short-term financial obligations using only its most liquid assets. A quick ratio above 1 indicates that the company has enough liquid assets to cover its short-term liabilities. This suggests that the company has a strong ability to meet its short-term financial obligations.

Another key ratio to examine is the return on equity (ROE), which measures a company’s profitability by comparing its net income to its shareholders’ equity. A high ROE indicates that the company is generating strong profits using shareholder funds. This indicates that the company is performing well in terms of profitability. In addition to these key ratios, analysts may also look at other financial metrics such as debt-to-equity ratio, earnings per share, and gross profit margin to get a comprehensive view of UPSTART HOLDINGS’ financial health. Overall, based on the analysis of UPSTART HOLDINGS’ financial ratios, the company appears to be in a strong financial position. Its high quick ratio and ROE suggest that it has ample liquidity and is generating strong profits. Investors and analysts will likely continue to monitor the company’s financial performance by examining these ratios in the future. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Upstart Holdings. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Upstart Holdings. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Upstart Holdings. More…

Key Ratios Snapshot

Some of the financial key ratios for Upstart Holdings are shown below. More…

Analysis

After conducting a thorough analysis on UPSTART HOLDINGS‘s financials, I have come to the following conclusions. According to Star Chart, which evaluates a company’s performance across various financial metrics, UPSTART HOLDINGS is strong in terms of growth but weak in areas such as assets, dividends, and profitability. In terms of growth, Star Chart has given UPSTART HOLDINGS a high rating, indicating that the company has been successful in increasing its revenue and earnings over time. This is a positive sign for investors who are looking for companies with potential for future growth. However, UPSTART HOLDINGS seems to be lacking in other key areas. The company has been given a low rating in terms of assets, which suggests that it may not have a strong balance sheet. This could be a concern for investors who prioritize stability and security in their investments. Additionally, UPSTART HOLDINGS has received a weak rating in terms of dividends, indicating that it may not be a good source of income for investors seeking regular payouts. The company’s profitability has also been rated as low, which could be a red flag for investors looking for profitable companies to invest in. Based on these factors, UPSTART HOLDINGS has been classified as a ‘rhino’ by Star Chart. This means that the company has achieved moderate revenue or earnings growth, but may have other areas that need improvement. Considering the overall financial health of UPSTART HOLDINGS, I would recommend it to investors who are looking for companies with potential for growth and are comfortable with taking on some risk. However, investors who prioritize stability and consistent returns may not find UPSTART HOLDINGS to be the best fit for their investment portfolio. It is worth noting that UPSTART HOLDINGS has received an intermediate health score of 4/10 from Star Chart. This takes into account the company’s cashflows and debt and suggests that it is likely to sustain its operations even during times of crisis. This could be reassuring for investors who are looking for companies that are well-positioned to weather economic downturns. Depending on individual investment goals and risk tolerance, different types of investors may be interested in this company. More…

Peers

The company was founded in 2012 and is headquartered in San Francisco, California. Upstart Holdings Inc operates in the United States and Canada. The company offers personal loans to applicants with a good credit history and a steady income. The company also offers loans to students and recent graduates. LendingClub Corp is a financial technology company that offers personal loans, small business loans, and student loans. The company was founded in 2006 and is headquartered in San Francisco, California. LendingClub Corp operates in the United States, Canada, and the United Kingdom. SoFi Technologies Inc is a financial technology company that offers student loans, personal loans, and mortgage loans. The company was founded in 2011 and is headquartered in San Francisco, California. SoFi Technologies Inc operates in the United States and the United Kingdom. PayPal Holdings Inc is a technology company that operates a global online payments system. The company was founded in 1998 and is headquartered in San Jose, California. PayPal Holdings Inc operates in 202 markets and has 193 million active account holders.

– LendingClub Corp ($NYSE:LC)

LendingClub is an online credit marketplace connecting borrowers and investors. LendingClub’s technology platform enables it to provide a differentiated customer experience, offer lower costs, and create better outcomes for borrowers and investors.

LendingClub’s mission is to transform the banking system to make credit more affordable and investing more rewarding. The company was founded in 2006 and is headquartered in San Francisco, California.

LendingClub has a market cap of $1.22B as of 2022 and a Return on Equity of 9.83%. The company’s technology platform enables it to provide a differentiated customer experience, offer lower costs, and create better outcomes for borrowers and investors.

– SoFi Technologies Inc ($NASDAQ:SOFI)

SoFi Technologies Inc is a financial technology company with a market cap of 5.22 billion as of early 2021. The company offers a range of financial services including student loan refinancing, personal loans, mortgage loans, and investing products. SoFi has been one of the fastest-growing companies in Silicon Valley in recent years and has raised over $4 billion in venture funding.

– PayPal Holdings Inc ($NASDAQ:PYPL)

PayPal Holdings Inc is a digital payments company that enables customers to send and receive money online. The company has a market cap of 103.2 billion as of 2022 and a return on equity of 11.16%. PayPal Holdings Inc operates in more than 200 countries and territories and has over 300 million active customers. The company enables customers to pay and get paid in more than 100 currencies.

Summary

Upstart Holdings, Inc. is a financial technology company that utilizes artificial intelligence and machine learning to improve the lending process. One way to assess the financial health of a company like Upstart is through ratios. These financial ratios can provide valuable insights into the company’s liquidity, profitability, and leverage. For example, the current ratio can indicate if the company has enough short-term assets to cover its current liabilities.

Additionally, the return on equity ratio can show how efficiently the company is utilizing its shareholders’ investments. By analyzing these ratios and comparing them to industry benchmarks, investors can gain a better understanding of Upstart’s financial health and make more informed investment decisions.