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Transcom WorldWide (OSTO:TWW SDB A) Financial Strength : 0 (As of Sep. 2014)


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What is Transcom WorldWide Financial Strength?

Transcom WorldWide 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.

Transcom WorldWide's Interest Coverage for the quarter that ended in Sep. 2014 was 14.14. Transcom WorldWide's debt to revenue ratio for the quarter that ended in Sep. 2014 was 0.11. As of today, Transcom WorldWide's Altman Z-Score is 2.50.


Competitive Comparison of Transcom WorldWide's Financial Strength

For the Specialty Business Services subindustry, Transcom WorldWide'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.


Transcom WorldWide's Financial Strength Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Transcom WorldWide's Financial Strength distribution charts can be found below:

* The bar in red indicates where Transcom WorldWide's Financial Strength falls into.


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Transcom WorldWide 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:

Transcom WorldWide's Interest Expense for the months ended in Sep. 2014 was kr-3 Mil. Its Operating Income for the months ended in Sep. 2014 was kr48 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2014 was kr493 Mil.

Transcom WorldWide's Interest Coverage for the quarter that ended in Sep. 2014 is

Interest Coverage=-1*Operating Income (Q: Sep. 2014 )/Interest Expense (Q: Sep. 2014 )
=-1*48.441/-3.427
=14.14

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

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

Transcom WorldWide's Debt to Revenue Ratio for the quarter that ended in Sep. 2014 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2014 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(123.363 + 492.655) / 5366.212
=0.11

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.

Transcom WorldWide has a Z-score of 2.50, indicating it is in Grey Zones. This implies that Transcom WorldWide 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.


Transcom WorldWide  (OSTO:TWW SDB A) 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.

Transcom WorldWide has the Financial Strength Rank of 0.


Transcom WorldWide Financial Strength Related Terms

Thank you for viewing the detailed overview of Transcom WorldWide's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Transcom WorldWide Business Description

Traded in Other Exchanges
N/A
Address
Transcom WorldWide SA was established in 1995. Together with its subsidiaries provide multi-language customer relationship management products and services ('CRM') and credit management services ('CMS'), including customer help lines and other telephone-based marketing and customer service programs ('teleservices') to clients in customer-intensive industries. The Group has two primary sources of revenues being its CRM (Customer Relationship Management) and its CMS (Credit Management Services) businesses. In relation to its CRM business, revenue mainly arise from call services operations. In relation to its CMS business, revenue mainly arise from fees and commissions generated from the collection of receivables on behalf of customers. The Company's operating segments are North Europe CRM (Denmark, Netherlands, Norway, Sweden, Estonia, Latvia and Lithuania), Central & South Europe CRM (Austria, Belgium, Croatia, Germany, Hungary, Italy, luxembourg, Poland, Slovakia, Switzerland, and Tunisia), Iberia & latam CRM (Chile, Peru, Portugal and Spain), North America & Asia Pacific CRM (Canada, the Philippines, USA, the United Kingdom and Australia), and CMS (Austria, the Czech Republic, the United Kingdom, Poland, Denmark, Norway and Sweden).

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