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Sun TV Network (BOM:532733) Financial Strength : 10 (As of Mar. 2024)


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What is Sun TV Network Financial Strength?

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

Good Sign:

Sun TV Network 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.

Sun TV Network's Interest Coverage for the quarter that ended in Mar. 2024 was 220.80. Sun TV Network's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.01. As of today, Sun TV Network's Altman Z-Score is 18.88.


Competitive Comparison of Sun TV Network's Financial Strength

For the Broadcasting subindustry, Sun TV Network'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.


Sun TV Network's Financial Strength Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Sun TV Network's Financial Strength distribution charts can be found below:

* The bar in red indicates where Sun TV Network's Financial Strength falls into.



Sun TV Network 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:

Sun TV Network's Interest Expense for the months ended in Mar. 2024 was ₹-19 Mil. Its Operating Income for the months ended in Mar. 2024 was ₹4,151 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ₹297 Mil.

Sun TV Network'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*4151/-18.8
=220.80

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. Sun TV Network Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

Sun TV Network'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
=(81 + 296.5) / 38451.2
=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.

Sun TV Network has a Z-score of 18.88, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 18.88 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.


Sun TV Network  (BOM:532733) 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.

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


Sun TV Network Financial Strength Related Terms

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Sun TV Network (BOM:532733) Business Description

Traded in Other Exchanges
Address
73, MRC Nagar Main Road, Murasoli Maran Towers, MRC Nagar, Chennai, TN, IND, 600028
Sun TV Network Ltd is a media and entertainment company. The group owns and operates a series of television networks across four languages in the news, music, action, life, movies, kids, and comedy genres. It also airs FM stations in several Indian languages. Its business activities are reported under a single segment being Broadcasting. The company generates revenues from advertising, broadcasting fees, International subscriptions, other subscriptions, movie distribution, and content trading. Geographically, the group is focused on the Indian market with few operations outside India.

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