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Bona Film Group (Bona Film Group) Financial Strength : 0 (As of Sep. 2015)


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What is Bona Film Group Financial Strength?

Bona Film Group has the Financial Strength Rank of 0.

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.

Bona Film Group's Interest Coverage for the quarter that ended in Sep. 2015 was 7.93. Bona Film Group's debt to revenue ratio for the quarter that ended in Sep. 2015 was 0.49. As of today, Bona Film Group's Altman Z-Score is 0.00.


Competitive Comparison of Bona Film Group's Financial Strength

For the Broadcasting subindustry, Bona Film Group'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.


Bona Film Group's Financial Strength Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Bona Film Group's Financial Strength distribution charts can be found below:

* The bar in red indicates where Bona Film Group's Financial Strength falls into.



Bona Film Group 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:

Bona Film Group's Interest Expense for the months ended in Sep. 2015 was $-1.2 Mil. Its Operating Income for the months ended in Sep. 2015 was $9.1 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2015 was $6.0 Mil.

Bona Film Group's Interest Coverage for the quarter that ended in Sep. 2015 is

Interest Coverage=-1*Operating Income (Q: Sep. 2015 )/Interest Expense (Q: Sep. 2015 )
=-1*9.136/-1.152
=7.93

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

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

Bona Film Group's Debt to Revenue Ratio for the quarter that ended in Sep. 2015 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2015 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(147.525 + 5.951) / 315.672
=0.49

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.

Bona Film Group has a Z-score of 0.00, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

* 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.


Bona Film Group  (NAS:BONA) 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.

Bona Film Group has the Financial Strength Rank of 0.


Bona Film Group Financial Strength Related Terms

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Bona Film Group (Bona Film Group) Business Description

Traded in Other Exchanges
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Address
Bona Film Group Ltd is incorporated in the Cayman Islands on July 8, 2010. On December 14, 2010, it completed its initial public offering. The Company operates as a film distributor in China. It distributes films through virtually all of the theater circuits in China. It has distribution rights to a selection of films through joint distribution arrangements with industry participants such as the state-owned China Film Group Corporation. It has distributed 39 Chinese films (including Hong Kong films) internationally. In addition to film distribution and film and television production operations, it owns and operates 21 movie theaters in commercial districts and residential areas in several major cities in China. The Company's film distribution activities consist of film sourcing, which includes identifying quality film projects with commercial potential and securing film distribution rights; print and marketing, which includes coordinating the distribution of film prints to theater circuits, as well as conducting marketing and publicity campaigns to promote the films to their target audiences; exhibition, which includes negotiating the terms of exhibitions of films in domestic and international movie theaters as well as through non-theatrical distribution channels and film advertising, which includes the sale of approximately three minutes advertising time immediately prior to the start of the theatrical screening of a film, in-film product placements and cross-promotion campaigns. The Company faces competition for audiences from companies within the entertainment business and from alternative forms of leisure entertainment, such as sporting events, outdoor recreation, video games, the Internet and other cultural and computer-related activities. Its competitors in film distribution and production include state-owned enterprises such as China Film Group and non state-owned companies such as Huayi Brothers. Its trademark includes "Bona". Its talent agency business is subject to various PRC laws, rules and regulations.

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