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MSDL (Morgan Stanley Direct Lending Fund) Financial Strength : 3 (As of Sep. 2024)


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What is Morgan Stanley Direct Lending Fund Financial Strength?

Morgan Stanley Direct Lending Fund has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Morgan Stanley Direct Lending Fund displays poor financial strength. Usually, this is caused by too much debt for the company.

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.

GuruFocus does not calculate Morgan Stanley Direct Lending Fund's interest coverage with the available data. Morgan Stanley Direct Lending Fund's debt to revenue ratio for the quarter that ended in Sep. 2024 was 7.43. Altman Z-Score does not apply to banks and insurance companies.

Morgan Stanley Direct Lending Fund 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:

Morgan Stanley Direct Lending Fund's Interest Expense for the months ended in Sep. 2024 was $-33.2 Mil. Its Operating Income for the months ended in Sep. 2024 was $0.0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was $1,841.6 Mil.

Morgan Stanley Direct Lending Fund's Interest Coverage for the quarter that ended in Sep. 2024 is

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

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

Morgan Stanley Direct Lending Fund's Debt to Revenue Ratio for the quarter that ended in Sep. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 1841.565) / 247.904
=7.43

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.

Altman Z-Score does not apply to banks and insurance companies.

* 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.

Morgan Stanley Direct Lending Fund  (NYSE:MSDL) 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.

Morgan Stanley Direct Lending Fund has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Morgan Stanley Direct Lending Fund Financial Strength Related Terms

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Morgan Stanley Direct Lending Fund Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Morgan Stanley Direct Lending Fund (NYSE:MSDL) » Definitions » Financial Strength
Comparable Companies
Traded in Other Exchanges
N/A
Address
1585 Broadway, 23rd Floor, New York, NY, USA, 10036
Website
https://www.msdl.com
Morgan Stanley Direct Lending Fund is a fund whose investment objective is to achieve attractive risk-adjusted returns via current income and, to a lesser extent, capital appreciation by investing predominantly in directly originated senior secured term loans issued by U.S. middle-market companies backed by private equity sponsors. It invests predominantly in directly originated senior secured term loans including first lien senior secured term loans including unitranche loans and second lien senior secured term loans, with the balance of the investments expected to be in higher-yielding assets such as mezzanine debt, unsecured debt, equity investments and other opportunistic asset purchases.