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ASNFF (AsiaInfo Technologies) Financial Strength : 9 (As of Dec. 2024)


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What is AsiaInfo Technologies Financial Strength?

AsiaInfo Technologies has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

AsiaInfo Technologies Ltd 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.

AsiaInfo Technologies's Interest Coverage for the quarter that ended in Dec. 2024 was 273.35. AsiaInfo Technologies's debt to revenue ratio for the quarter that ended in Dec. 2024 was 0.02. As of today, AsiaInfo Technologies's Altman Z-Score is 2.84.


Competitive Comparison of AsiaInfo Technologies's Financial Strength

For the Software - Application subindustry, AsiaInfo Technologies'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.


AsiaInfo Technologies's Financial Strength Distribution in the Software Industry

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

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


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AsiaInfo Technologies 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:

AsiaInfo Technologies's Interest Expense for the months ended in Dec. 2024 was $-0.4 Mil. Its Operating Income for the months ended in Dec. 2024 was $113.4 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was $12.0 Mil.

AsiaInfo Technologies's Interest Coverage for the quarter that ended in Dec. 2024 is

Interest Coverage=-1*Operating Income (Q: Dec. 2024 )/Interest Expense (Q: Dec. 2024 )
=-1*113.439/-0.415
=273.35

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. AsiaInfo Technologies Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

AsiaInfo Technologies's Debt to Revenue Ratio for the quarter that ended in Dec. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(9.821 + 11.972) / 1003.042
=0.02

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.

AsiaInfo Technologies has a Z-score of 2.84, indicating it is in Grey Zones. This implies that AsiaInfo Technologies 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 2.84 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.


AsiaInfo Technologies  (OTCPK:ASNFF) 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.

AsiaInfo Technologies has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.


AsiaInfo Technologies Financial Strength Related Terms

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AsiaInfo Technologies Business Description

Traded in Other Exchanges
Address
10 Xibeiwang Dong Lu, AsiaInfo Plaza, Hai Dian District, Beijing, CHN, 100193
AsiaInfo Technologies Ltd is a provider of telecom software products and related services. The company's product portfolio currently consists of CRM, charging & billing, and big data products to IoT and intelligent network products. Its software products are deployed using an on-premises, project-based delivery model, and are accompanied by end-to-end, professional deployment services. The Company's revenue is principally generated from project-based software development contracts, under which the Group develops software products and provides services at fixed prices and or variable prices.

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