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Orange Polska (LSE:OPLD) Financial Strength : 4 (As of Mar. 2024)


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What is Orange Polska Financial Strength?

Orange Polska 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.

Orange Polska's Interest Coverage for the quarter that ended in Mar. 2024 was 4.69. Orange Polska's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.59. As of today, Orange Polska's Altman Z-Score is 1.54.


Competitive Comparison of Orange Polska's Financial Strength

For the Telecom Services subindustry, Orange Polska'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.


Orange Polska's Financial Strength Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Orange Polska's Financial Strength distribution charts can be found below:

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



Orange Polska 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:

Orange Polska's Interest Expense for the months ended in Mar. 2024 was $-19 Mil. Its Operating Income for the months ended in Mar. 2024 was $89 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $1,294 Mil.

Orange Polska'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*88.621/-18.899
=4.69

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

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

Orange Polska'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
=(560.842 + 1294.329) / 3147.456
=0.59

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.

Orange Polska has a Z-score of 1.54, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.54 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.


Orange Polska  (LSE:OPLD) 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.

Orange Polska has the Financial Strength Rank of 4.


Orange Polska Financial Strength Related Terms

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


Orange Polska (LSE:OPLD) Business Description

Traded in Other Exchanges
Address
160 Aleje Jerozolimskie Street, Warsaw, POL, 02-326
Orange Polska SA is a Poland-based telecommunications company. The company offers a portfolio of telecommunication products and services for residential, business and wholesale customers. The company combines fixed-line and mobile services, offering consistent connectivity based on different technologies. It derives revenue from the provision of Internet, mobile, and television services. The company operates through various divisions which include Mobile only services, Fixed only services, Convergent services (consumer market), Equipment sales, IT and integration services, Wholesale and Other revenue. The majority of the company's revenue is earned through Mobile only services.

Orange Polska (LSE:OPLD) Headlines

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