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Sky Deutschland AG (LTS:0QXE) Financial Strength : 0 (As of Dec. 2013)


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What is Sky Deutschland AG Financial Strength?

Sky Deutschland AG 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.

Sky Deutschland AG did not have earnings to cover the interest expense. Sky Deutschland AG's debt to revenue ratio for the quarter that ended in Dec. 2013 was 0.36. As of today, Sky Deutschland AG's Altman Z-Score is 2.31.


Competitive Comparison of Sky Deutschland AG's Financial Strength

For the Broadcasting subindustry, Sky Deutschland AG'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.


Sky Deutschland AG's Financial Strength Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Sky Deutschland AG's Financial Strength distribution charts can be found below:

* The bar in red indicates where Sky Deutschland AG's Financial Strength falls into.



Sky Deutschland AG 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:

Sky Deutschland AG's Interest Expense for the months ended in Dec. 2013 was €-73 Mil. Its Operating Income for the months ended in Dec. 2013 was €-54 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2013 was €533 Mil.

Sky Deutschland AG's Interest Coverage for the quarter that ended in Dec. 2013 is

Sky Deutschland AG did not have earnings to cover the interest expense.

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

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

Sky Deutschland AG's Debt to Revenue Ratio for the quarter that ended in Dec. 2013 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2013 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(18.707 + 532.906) / 1546.45
=0.36

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.

Sky Deutschland AG has a Z-score of 2.31, indicating it is in Grey Zones. This implies that Sky Deutschland AG is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

* 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.


Sky Deutschland AG  (LTS:0QXE) 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.

Sky Deutschland AG has the Financial Strength Rank of 0.


Sky Deutschland AG Financial Strength Related Terms

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Sky Deutschland AG (LTS:0QXE) Business Description

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Sky Deutschland AG is a Germany-based holding company established in 2002. The Company along with its subsidiaries operates a pay-TV business in Germany and Austria under the Sky trademark. The Company's package includes: Sky Welt Package, Fußball Bundesliga Package, Premium Bundesliga HD channels, Sport Package, Premium Sport HD Channels, Film Package and Premium Film HD Channels. The Company is also engaged in the purchase, sale and distribution of rights to films, series and TV productions, the acquisition, sale and distribution of broadcasting rights for public events, the arrangement of program magazine subscriptions, and other activities associated with the operation of the pay-TV business. The Company's services includes: Sky Go, Sky+, Sky Anytime, and Sky Home. Its offers channels of various genres, which includes; Sky Sports News HD, Sky Cinema HD, Sky Atlantic HD, Sky Sport HD, Sky Bundesliga and Sky Select HD. The Company competes with platform operators offering both pay-TV packages and VoD services. It also competes with over-the-top players who provide video-on-demand and subscription-video-on-demand entertainment via the Internet.

Sky Deutschland AG (LTS:0QXE) Headlines

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