GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » Motilal Oswal Financial Services Ltd (BOM:532892) » Definitions » Financial Strength

Motilal Oswal Financial Services (BOM:532892) Financial Strength : 4 (As of Mar. 2024)


View and export this data going back to 2007. Start your Free Trial

What is Motilal Oswal Financial Services Financial Strength?

Motilal Oswal Financial Services has the Financial Strength Rank of 4.

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.

Motilal Oswal Financial Services's Interest Coverage for the quarter that ended in Mar. 2024 was 4.10. Motilal Oswal Financial Services's debt to revenue ratio for the quarter that ended in Mar. 2024 was 2.03. As of today, Motilal Oswal Financial Services's Altman Z-Score is 2.17.


Competitive Comparison of Motilal Oswal Financial Services's Financial Strength

For the Capital Markets subindustry, Motilal Oswal Financial Services'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.


Motilal Oswal Financial Services's Financial Strength Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Motilal Oswal Financial Services's Financial Strength distribution charts can be found below:

* The bar in red indicates where Motilal Oswal Financial Services's Financial Strength falls into.



Motilal Oswal Financial Services 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:

Motilal Oswal Financial Services's Interest Expense for the months ended in Mar. 2024 was ₹-2,947 Mil. Its Operating Income for the months ended in Mar. 2024 was ₹12,076 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ₹137,456 Mil.

Motilal Oswal Financial Services's Interest Coverage for the quarter that ended in Mar. 2024 is

Interest Coverage=-1*Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*12075.8/-2947.3
=4.10

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

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

Motilal Oswal Financial Services'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
=(0 + 137456.1) / 67768.8
=2.03

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.

Motilal Oswal Financial Services has a Z-score of 2.17, indicating it is in Grey Zones. This implies that Motilal Oswal Financial Services is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.17 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* 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.


Motilal Oswal Financial Services  (BOM:532892) 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.

Motilal Oswal Financial Services has the Financial Strength Rank of 4.


Motilal Oswal Financial Services Financial Strength Related Terms

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


Motilal Oswal Financial Services (BOM:532892) Business Description

Traded in Other Exchanges
Address
Rahimtullah Sayani Road, Motilal Oswal Tower, Opposite Parel ST Depot, Prabhadevi, Mumbai, MH, IND, 400025
Motilal Oswal Financial Services Ltd offers financial services including private wealth management, retail broking and distribution, institutional broking, asset management, investment banking, private equity, commodity broking and home finance. Broking operations are the leading revenue generator for the group. Through its broking and distribution segment, it helps retail customers across India make investment decisions with a research based advisory service. Services offered span across a host of asset classes and investment types, including mutual funds and insurance products.

Motilal Oswal Financial Services (BOM:532892) Headlines

No Headlines