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Gaming Realms (AQSE:GMR.GB) Financial Strength : 10 (As of Jun. 2024)


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What is Gaming Realms Financial Strength?

Gaming Realms has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Gaming Realms PLC shows strong financial strength.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and 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.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Gaming Realms's Interest Coverage for the quarter that ended in Jun. 2024 was 135.48. Gaming Realms's debt to revenue ratio for the quarter that ended in Jun. 2024 was 0.01. As of today, Gaming Realms's Altman Z-Score is 17.88.


Competitive Comparison of Gaming Realms's Financial Strength

For the Electronic Gaming & Multimedia subindustry, Gaming Realms'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.


Gaming Realms's Financial Strength Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Gaming Realms's Financial Strength distribution charts can be found below:

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



Gaming Realms 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:

Gaming Realms's Interest Expense for the months ended in Jun. 2024 was £-0.03 Mil. Its Operating Income for the months ended in Jun. 2024 was £3.39 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2024 was £0.11 Mil.

Gaming Realms's Interest Coverage for the quarter that ended in Jun. 2024 is

Interest Coverage=-1*Operating Income (Q: Jun. 2024 )/Interest Expense (Q: Jun. 2024 )
=-1*3.387/-0.025
=135.48

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

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Gaming Realms PLC has enough cash to cover all of its debt. Its financial situation is stable.

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

Gaming Realms's Debt to Revenue Ratio for the quarter that ended in Jun. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0.039 + 0.105) / 27.162
=0.01

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.

Gaming Realms has a Z-score of 17.88, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 17.88 is strong.

* 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.


Gaming Realms  (AQSE:GMR.GB) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Gaming Realms has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.


Gaming Realms Financial Strength Related Terms

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Gaming Realms Business Description

Traded in Other Exchanges
Address
Two Valentine Place, London, GBR, SE1 8QH
Gaming Realms PLC is a gaming company. It develops, publishes, and licenses next-generation mobile gaming content. The company creates and publishes real money and social games for mobile, with operations in the UK, the U.S., and Canada. The group has two continuing reportable operating segments Licensing - brand and content licensing to partners in Europe and the U.S., and Social Publishing - providing freemium games to the U.S and Europe. The company's geographical segment includes the UK (including the Channel Islands), the U.S., Isle of Man, Malta, Gibraltar, and the Rest of the world. It generates the majority of its revenue from the Licensing segment.

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