iGate (FRA:MS4) Financial Strength : 0 (As of Mar. 2015)

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What is iGate Financial Strength?

iGate has the Financial Strength Rank of 0.

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.

iGate's Interest Coverage for the quarter that ended in Mar. 2015 was 7.43. iGate's debt to revenue ratio for the quarter that ended in Mar. 2015 was 0.52. As of today, iGate's Altman Z-Score is 0.00.

Competitive Comparison of iGate's Financial Strength

For the Information Technology Services subindustry, iGate'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.

iGate's Financial Strength Distribution in the Software Industry

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

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

iGate 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:

iGate's Interest Expense for the months ended in Mar. 2015 was €-7 Mil. Its Operating Income for the months ended in Mar. 2015 was €51 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2015 was €517 Mil.

iGate's Interest Coverage for the quarter that ended in Mar. 2015 is

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2015 )	/	Interest Expense (Q: Mar. 2015 )
	=	-1	*	50.739	/	-6.827
	=	7.43

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

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

iGate's Debt to Revenue Ratio for the quarter that ended in Mar. 2015 is

Debt to Revenue Ratio	=	Total Debt (Q: Mar. 2015 )			/	Revenue
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Revenue
	=	(98.868	+	516.516)	/	1190.268
	=	0.52

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.

iGate has a Z-score of 0.00, indicating it is in Distress Zones. This implies bankrupcy 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.

iGate (FRA:MS4) 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.

iGate has the Financial Strength Rank of 0.

iGate Financial Strength Related Terms

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

iGate (FRA:MS4) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » iGate Corp (FRA:MS4) » Definitions » Financial Strength

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.igate.com

Igate Corp was founded in 1986. The Company is an outsourcing provider of integrated end-to-end offshore centric information technology (IT) and IT-enabled operations solutions and services. The Company delivers various IT services through international integrated onsite and offshore delivery locations mainly in India. The Company provides its services to customers through industry focused practices, including insurance and healthcare (IHC), manufacturing, retail and logistics (MRDL), banking and financial services (BFS"), communications and utilities (CEU), and media and entertainment (MELT) and through technology focused practices. It offers services to customers through industry focused practices, including insurance and healthcare, life sciences, manufacturing, retail and logistics, banking and financial services, communications, energy and utilities, product and engineering solutions, government solutions and media and entertainment. Its IT and IT-enabled services include application development, application management, verification and validation, enterprise application solutions, business intelligence and data warehousing, infrastructure management services, enterprise mobility, cloud services, embedded systems development, engineering design services, IT consulting, IT governance and customized learning solutions, business process outsourcing ("BPO") and customer interaction services. The Company has operations in India, Canada, the United States, Europe, Mexico, Singapore, Malaysia, Japan, Australia, the United Arab Emirates, South Africa, Turkey, South Korea, China, Switzerland and the United Kingdom. The Company delivers effective solutions to more than 360 Fortune 1000 clients. The Company's main competitors in the IT and IT enabled outsourcing industry include IT outsourcing firms, consulting firms, systems integration-firms and general management consulting firms such as Tata Consultancy Services Limited, Infosys Technologies Limited, Cognizant Technology Solutions Corporation, Wipro Limited, Genpact Limited, WNS (Holdings) Limited, EXLService Holdings Inc., Syntel Inc., Mindtree Limited, and Hexaware Technologies Limited. The Company is subject to numerous, and sometimes conflicting, legal regimes on matters as diverse as anticorruption, import/export controls, content requirements, trade restrictions, tariffs, taxation, sanctions, immigration, internal and disclosure control obligations, securities regulation, anti-competition, data privacy and labor relations.

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