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Hrvatski Telekom DD (LSE:THTC) Financial Strength : 10 (As of Dec. 2023)


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What is Hrvatski Telekom DD Financial Strength?

Hrvatski Telekom DD has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Hrvatski Telekom DD shows strong financial strength.

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.

Hrvatski Telekom DD's Interest Coverage for the quarter that ended in Dec. 2023 was 24.87. Hrvatski Telekom DD's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.06. As of today, Hrvatski Telekom DD's Altman Z-Score is 5.01.


Competitive Comparison of Hrvatski Telekom DD's Financial Strength

For the Telecom Services subindustry, Hrvatski Telekom DD'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.


Hrvatski Telekom DD's Financial Strength Distribution in the Telecommunication Services Industry

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

* The bar in red indicates where Hrvatski Telekom DD's Financial Strength falls into.



Hrvatski Telekom DD 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:

Hrvatski Telekom DD's Interest Expense for the months ended in Dec. 2023 was $-2 Mil. Its Operating Income for the months ended in Dec. 2023 was $41 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $56 Mil.

Hrvatski Telekom DD'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*41.304/-1.661
=24.87

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

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

Hrvatski Telekom DD'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
=(17.49 + 55.54) / 1171.8
=0.06

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.

Hrvatski Telekom DD has a Z-score of 5.01, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 5.01 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.


Hrvatski Telekom DD  (LSE:THTC) 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.

Hrvatski Telekom DD has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.


Hrvatski Telekom DD Financial Strength Related Terms

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Hrvatski Telekom DD (LSE:THTC) Business Description

Traded in Other Exchanges
Address
Radnicka cesta 21, Zagreb, HRV, 10000
Hrvatski Telekom DD is a telecommunications service provider in Croatia that offers fixed and mobile telephony services as well as wholesale, Internet, and data. The company's business segments are the Residential business unit, Business unit, Network, and support functions, Optima Telekom segment, and Crnogorski Telekom segment. The majority of its revenue is derived from the Residential business unit segment that includes marketing, sales, and customer services, focused on providing mobile, fixed-line telecommunications, electricity, and TV distribution and services to residential customers.

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