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Intellect Design Arena (BOM:538835) Financial Strength : 9 (As of Dec. 2024)


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What is Intellect Design Arena Financial Strength?

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

Good Sign:

Intellect Design Arena 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.

Intellect Design Arena's Interest Coverage for the quarter that ended in Dec. 2024 was 77.34. Intellect Design Arena's debt to revenue ratio for the quarter that ended in Dec. 2024 was 0.00. As of today, Intellect Design Arena's Altman Z-Score is 8.88.


Competitive Comparison of Intellect Design Arena's Financial Strength

For the Software - Application subindustry, Intellect Design Arena'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.


Intellect Design Arena's Financial Strength Distribution in the Software Industry

For the Software industry and Technology sector, Intellect Design Arena's Financial Strength distribution charts can be found below:

* The bar in red indicates where Intellect Design Arena's Financial Strength falls into.


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Intellect Design Arena 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:

Intellect Design Arena's Interest Expense for the months ended in Dec. 2024 was ₹-10 Mil. Its Operating Income for the months ended in Dec. 2024 was ₹791 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was ₹0 Mil.

Intellect Design Arena'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*791.16/-10.23
=77.34

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. Intellect Design Arena Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

Intellect Design Arena'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
=(0 + 0) / 24385.04
=0.00

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.

Intellect Design Arena has a Z-score of 8.88, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 8.88 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.


Intellect Design Arena  (BOM:538835) 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.

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


Intellect Design Arena Financial Strength Related Terms

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


Intellect Design Arena Business Description

Traded in Other Exchanges
Address
SIPCOT IT Park, Plot No. 3/G-3, Siruseri, Chennai, TN, IND, 600130
Intellect Design Arena Ltd is an Indian IT software services company. It is engaged in the business of software and financial technology development for banking, insurance, and other financial services. The company operates under the primary business segment of Software Product Licence and related services. It derives revenue from the operations comprising income from its four business verticals, Global Consumer Banking, Global Transaction Banking, IntellectAI, and Digital Technology for Commerce. The company products include Digital cards, Digital lending, Capital cube, Xponent, Digital core, Payments, Wealth Qube, and others. Geographically, the company derives a majority of its revenue from outside India.

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