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BMC Software, (FRA:BMS) Financial Strength : 0 (As of Jun. 2013)


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What is BMC Software, Financial Strength?

BMC Software, 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.

BMC Software,'s Interest Coverage for the quarter that ended in Jun. 2013 was 4.65. BMC Software,'s debt to revenue ratio for the quarter that ended in Jun. 2013 was 0.67. As of today, BMC Software,'s Altman Z-Score is 0.00.


Competitive Comparison of BMC Software,'s Financial Strength

For the Software - Application subindustry, BMC Software,'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.


BMC Software,'s Financial Strength Distribution in the Software Industry

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

* The bar in red indicates where BMC Software,'s Financial Strength falls into.


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BMC Software, 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:

BMC Software,'s Interest Expense for the months ended in Jun. 2013 was €-11 Mil. Its Operating Income for the months ended in Jun. 2013 was €53 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2013 was €989 Mil.

BMC Software,'s Interest Coverage for the quarter that ended in Jun. 2013 is

Interest Coverage=-1*Operating Income (Q: Jun. 2013 )/Interest Expense (Q: Jun. 2013 )
=-1*52.833/-11.37
=4.65

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

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

BMC Software,'s Debt to Revenue Ratio for the quarter that ended in Jun. 2013 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2013 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 988.508) / 1466.276
=0.67

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.

BMC Software, 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.


BMC Software,  (FRA:BMS) 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.

BMC Software, has the Financial Strength Rank of 0.


BMC Software, Financial Strength Related Terms

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BMC Software, Business Description

Traded in Other Exchanges
N/A
Address
BMC Software, Inc., was organized as a Texas corporation in 1980 and was reincorporated in Delaware in July 1988. It is a software company which provides IT management solutions for large, mid-sized and small enterprises and public sector organizations around the world. The Company's portfolios of IT management software solutions simplifies and automates the management of IT processes, mainframe, distributed, virtualized and cloud computing environments, as well as applications and databases. It also provides its customers with maintenance and support services for its products and assist customers with software implementation, integration, IT process and organizational transformation, and education services. The Company is organized into two business segments, Enterprise Service Management (ESM) and Mainframe Service Management (MSM). The Company's ESM segment consists of its solutions and related professional services in the following IT management areas: Service Assurance; Service Automation; Service Support; and BMC Atrium. The Company's MSM segment addresses IT requirements for mainframe data and performance management, middleware management, job scheduling and enterprise workload automation. The Company's customers include manufacturers, telecommunication companies, financial service providers, educational institutions, retailers, distributors, hospitals, service providers, government agencies and channel partners including resellers, distributors and system integrators. Its competitors are International Business Machines Corporation (IBM), CA, Inc. (CA) and Hewlett-Packard Company (HP). The Company's solutions are used by some of the largest, demanding IT organizations in the world including over 16,000 companies.