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EasyCall Communications Philippines (PHS:ECP) Financial Strength : 4 (As of Mar. 2024)


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What is EasyCall Communications Philippines Financial Strength?

EasyCall Communications Philippines has the Financial Strength Rank of 4.

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.

EasyCall Communications Philippines's Interest Coverage for the quarter that ended in Mar. 2024 was 3.01. EasyCall Communications Philippines's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.49. As of today, EasyCall Communications Philippines's Altman Z-Score is 1.87.


Competitive Comparison of EasyCall Communications Philippines's Financial Strength

For the Information Technology Services subindustry, EasyCall Communications Philippines'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.


EasyCall Communications Philippines's Financial Strength Distribution in the Software Industry

For the Software industry and Technology sector, EasyCall Communications Philippines's Financial Strength distribution charts can be found below:

* The bar in red indicates where EasyCall Communications Philippines's Financial Strength falls into.



EasyCall Communications Philippines 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:

EasyCall Communications Philippines's Interest Expense for the months ended in Mar. 2024 was ₱-1.7 Mil. Its Operating Income for the months ended in Mar. 2024 was ₱5.1 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ₱72.7 Mil.

EasyCall Communications Philippines's Interest Coverage for the quarter that ended in Mar. 2024 is

Interest Coverage=-1*Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*5.138/-1.705
=3.01

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

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

EasyCall Communications Philippines's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(120.954 + 72.665) / 397.156
=0.49

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.

EasyCall Communications Philippines has a Z-score of 1.87, indicating it is in Grey Zones. This implies that EasyCall Communications Philippines is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 1.87 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy 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.


EasyCall Communications Philippines  (PHS:ECP) 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.

EasyCall Communications Philippines has the Financial Strength Rank of 4.


EasyCall Communications Philippines Financial Strength Related Terms

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EasyCall Communications Philippines (PHS:ECP) Business Description

Traded in Other Exchanges
N/A
Address
4th Avenue, Corner 30th Street E-Square, The Penthouse, Net Quad Building, Bonifacio Global City, Crescent Park West, Taguig, PHL, 1634
EasyCall Communications Philippines Inc is engaged in information technology-related business. It operates as an Internet Services Provider in the Philippines. The company's products and services include customer service, corporate digital subscriber line resellership, Internet service, Web business solutions and server co-location. It also offers Internet protocol broadband managed services through a very small aperture terminal.

EasyCall Communications Philippines (PHS:ECP) Headlines

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