DCEL (Digicel Group) Financial Strength: 0 (As of Mar. 2015)

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What is Digicel Group Financial Strength?

Digicel Group has the Financial Strength Rank of 0.

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.

Digicel Group's Interest Coverage for the quarter that ended in Mar. 2015 was 1.58. Digicel Group's debt to revenue ratio for the quarter that ended in Mar. 2015 was 2.32. As of today, Digicel Group's Altman Z-Score is 0.00.

Digicel Group  (NYSE:DCEL) 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.

Digicel Group has the Financial Strength Rank of 0.

Digicel Group Financial Strength Related Terms

DCEL vs DIRV, FULO, TOWTF: Financial Strength Comparison

For the Telecom Services subindustry, Digicel 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.

Digicel Group Financial Strength vs Telecommunication Services Industry

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

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


Digicel 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:

Digicel Group's Interest Expense for the months ended in Mar. 2015 was $-447.99 Mil. Its Operating Income for the months ended in Mar. 2015 was $707.81 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2015 was $6,305.51 Mil.

Digicel Group's Interest Coverage for the quarter that ended in Mar. 2015 is

Interest Coverage=-1*Operating Income (Q: Mar. 2015 )/Interest Expense (Q: Mar. 2015 )
=-1*707.806/-447.988
=1.58

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

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

Digicel Group's Debt to Revenue Ratio for the quarter that ended in Mar. 2015 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2015 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(163.227 + 6305.513) / 2794.11
=2.32

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.

Digicel 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.

Digicel Group Business Description

Digicel Group Ltd was incorporated under the laws of Bermuda on February 5, 2007. The Company is a provider of communications services in the Caribbean and South Pacific regions. It provides a comprehensive range of mobile communications, business solutions, cable TV & broadband and other related products and services to retail, corporate (including small and medium-sized enterprises) and government customers. Its business is currently organized into nine reporting segments: Jamaica, Trinidad and Tobago, French West Indies, Haiti, El Salvador, Eastern Caribbean markets consisting of its operations in St. Lucia, Grenada and St. Vincent and the Grenadines, Guyana, Papua New Guinea and Other locations, consisting of its operations in all of its other markets. It has customer reach through 1,034 retail locations (including 667 exclusive stores) and a dealer and distributor network with approximately 183,000 recharge locations. It offers its services on both a prepaid and post-paid basis and market to retail and business customers. It caters to its retail customers through Digicel's dealer channel and to its corporate clients via a business channel. Its distribution channel is comprised of the four distinct categories: Vendor Stores, Third-Party Dealers, Prepaid Card Outlets, and Diaspora. The Company's Mobile and Cable TV & Broadband operations are subject to regulation in each of the markets in which it operates.