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Bezeq The Israeli Telecommunication (Bezeq The Israeli Telecommunication) Financial Strength : 5 (As of Dec. 2023)


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What is Bezeq The Israeli Telecommunication Financial Strength?

Bezeq The Israeli Telecommunication has the Financial Strength Rank of 5.

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.

Bezeq The Israeli Telecommunication's Interest Coverage for the quarter that ended in Dec. 2023 was 5.78. Bezeq The Israeli Telecommunication's debt to revenue ratio for the quarter that ended in Dec. 2023 was 1.01. As of today, Bezeq The Israeli Telecommunication's Altman Z-Score is 1.48.


Competitive Comparison of Bezeq The Israeli Telecommunication's Financial Strength

For the Telecom Services subindustry, Bezeq The Israeli Telecommunication'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.


Bezeq The Israeli Telecommunication's Financial Strength Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Bezeq The Israeli Telecommunication's Financial Strength distribution charts can be found below:

* The bar in red indicates where Bezeq The Israeli Telecommunication's Financial Strength falls into.



Bezeq The Israeli Telecommunication 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:

Bezeq The Israeli Telecommunication's Interest Expense for the months ended in Dec. 2023 was $-21 Mil. Its Operating Income for the months ended in Dec. 2023 was $119 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $2,002 Mil.

Bezeq The Israeli Telecommunication's Interest Coverage for the quarter that ended in Dec. 2023 is

Interest Coverage=-1*Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*118.845/-20.564
=5.78

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

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

Bezeq The Israeli Telecommunication's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(402.471 + 2002.209) / 2383.316
=1.01

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.

Bezeq The Israeli Telecommunication has a Z-score of 1.48, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.48 is in distress zone. This implies bankruptcy 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.


Bezeq The Israeli Telecommunication  (OTCPK:BZQIY) 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.

Bezeq The Israeli Telecommunication has the Financial Strength Rank of 5.


Bezeq The Israeli Telecommunication Financial Strength Related Terms

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Bezeq The Israeli Telecommunication (Bezeq The Israeli Telecommunication) Business Description

Traded in Other Exchanges
Address
132 Menachem Begin Avenue, Azrieli Center, (Triangle Tower), 27th Floor, Tel Aviv, ISR, 61620
Bezeq The Israeli Telecommunication Corp Ltd is a triple-play telecommunications company. The company generates revenue through the provision of mobile, broadband, and data. It operates through four business segments: Bezeq, Pelephone, Bezeq International, and DBS Satellite Services. The Bezeq segment generates revenue from fixed-line communications and contributes the majority of overall company revenue. Pelephone derives revenue from the provision of mobile services. Bezeq International and DBS Satellite Services produce revenue from the provision of Internet services and satellite TV services, respectively. The company owns telecommunications infrastructure, such as fibre networks. It generates the vast majority of its revenue in Israel.