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Telecom Italia Media SPA (MIL:TME) Financial Strength : 0 (As of Jun. 2015)


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What is Telecom Italia Media SPA Financial Strength?

Telecom Italia Media SPA 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.

Telecom Italia Media SPA's Interest Coverage for the quarter that ended in Jun. 2015 was 2.98. Telecom Italia Media SPA's debt to revenue ratio for the quarter that ended in Jun. 2015 was 2.29. As of today, Telecom Italia Media SPA's Altman Z-Score is -0.03.


Competitive Comparison of Telecom Italia Media SPA's Financial Strength

For the Broadcasting subindustry, Telecom Italia Media SPA'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.


Telecom Italia Media SPA's Financial Strength Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Telecom Italia Media SPA's Financial Strength distribution charts can be found below:

* The bar in red indicates where Telecom Italia Media SPA's Financial Strength falls into.



Telecom Italia Media SPA 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:

Telecom Italia Media SPA's Interest Expense for the months ended in Jun. 2015 was €-1.89 Mil. Its Operating Income for the months ended in Jun. 2015 was €5.64 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2015 was €0.00 Mil.

Telecom Italia Media SPA's Interest Coverage for the quarter that ended in Jun. 2015 is

Interest Coverage=-1*Operating Income (Q: Jun. 2015 )/Interest Expense (Q: Jun. 2015 )
=-1*5.635/-1.893
=2.98

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

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

Telecom Italia Media SPA's Debt to Revenue Ratio for the quarter that ended in Jun. 2015 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2015 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(196.202 + 0) / 85.74
=2.29

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.

Telecom Italia Media SPA has a Z-score of -0.03, 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.


Telecom Italia Media SPA  (MIL:TME) 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.

Telecom Italia Media SPA has the Financial Strength Rank of 0.


Telecom Italia Media SPA Financial Strength Related Terms

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Telecom Italia Media SPA (MIL:TME) Business Description

Traded in Other Exchanges
N/A
Address
Telecom Italia Media SPA is incorporated in Italy. The Company is a diversified media company. It operates in newswire output, TV production and content for TV and the web with the brands La7. It also broadcast MTV Italia channel that provides music & entertainment programs. It operates as network operator through Telecom Italia Media Broadcasting (100% owned by TI Media), and in the television industry through MTV Italia (51% owned by TI Media and 49% by Viacom). The Company provides broadcasting capacity and technological solutions for television operators, which are equipped with cutting-edge technology in the field of telecommunications and electronics.