GOTUGaotu Techedu Inc.
Is it safe?
Caution warranted: heavy debt (BB) and big price swings.
Net cash, but unprofitable, speculative. A rule of thumb on leverage, not a credit rating.
Large price swings, high volatility. Worst drawdown -100% · now 16% below its 52-week high.
Where this answer is blind. Altman sits structurally low for utilities and pipelines; Beneish runs high for fast growers, since sales growth alone lifts it; banks and REITs are excluded.
Can GOTU take a bad year?
Gaotu Techedu Inc. holds $3.17B more cash than debt, so a bad year is a question about profits, not about lenders.
Net cash
- Net debt / EBITDA
- net cash
Net debt / EBITDA · no net borrowings to measure against earnings
- Debt / equity
- 0.10×
Debt / equity
- Annualised volatility
- 58%
Annualised volatility · roughly twice as jumpy as the market
Details›
- Total debtFY2025
- $132M
- Cash and short-term investments
- $3.30B
- Net cash
- $3.17B
- EBITDA, trailing twelve months
- −$399M
- Operating profit, trailing twelve months
- −$503M
- Debt / equity
- 0.10×
- Annualised volatilitytwo years of daily moves
- 58%
- Worst drawdown on file
- −100%
- Below its 52-week high
- 16%
Balance sheet from SEC filings; drawdown and volatility from end-of-day closes; Altman Z from the filed statements.
Education & Training Services
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