What is China Mobile Financial Strength?
China Mobile has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
Good Sign:
China Mobile Ltd shows strong financial strength.
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.
China Mobile's Interest Coverage for the quarter that ended in Mar. 2024 was 44.10.
China Mobile's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.06.
As of today, China Mobile's Altman Z-Score is 2.62.
Competitive Comparison of China Mobile's Financial Strength
For the Telecom Services subindustry, China Mobile'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.
China Mobile's Financial Strength Distribution in the Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, China Mobile's Financial Strength distribution charts can be found below:
* The bar in red indicates where China Mobile's Financial Strength falls into.
China Mobile 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:
China Mobile's Interest Expense for the
months ended in Mar. 2024 was $-117 Mil. Its Operating Income for the
months ended in Mar. 2024 was $5,175 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $9,167 Mil.
China Mobile's Interest Coverage for the quarter that ended in Mar. 2024 is
The higher the ratio, the stronger the company's financial strength is.
2. Debt to revenue ratio. The lower, the better.
China Mobile's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is
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.
China Mobile has a Z-score of 2.62, indicating it is in Grey Zones. This implies that China Mobile 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 2.62 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.
China Mobile (China Mobile) Business Description
Traded in Other Exchanges
Address
99 Queen’s Road Central, 60th Floor, The Center, Hong Kong, HKG
China Mobile is not only the largest telecom operator in China by the number of mobile subscribers (990 million) but also the largest in the world. It has 60% of the total wireless market in China and 45% of the fixed-line broadband market. The firm is continuing to roll out its 5G network, having launched 5G service in late 2019. It is doing some 5G network sharing with China Broadnet at 700 MHz and also resells its 2G/4G/5G network through China Broadnet. Strong growth is being generated through internet data centers where it has the second-largest network in China and through Cloud Services. The company issued stock on the A-share market in 2022 and completed its first buyback of H-shares.
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