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TRKNY (Turk Telekomunikasyon AS) Financial Strength : 6 (As of Dec. 2024)


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What is Turk Telekomunikasyon AS Financial Strength?

Turk Telekomunikasyon AS has the Financial Strength Rank of 6.

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.

Turk Telekomunikasyon AS did not have earnings to cover the interest expense. Turk Telekomunikasyon AS's debt to revenue ratio for the quarter that ended in Dec. 2024 was 0.34. As of today, Turk Telekomunikasyon AS's Altman Z-Score is 2.22.


Competitive Comparison of Turk Telekomunikasyon AS's Financial Strength

For the Telecom Services subindustry, Turk Telekomunikasyon AS'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.


Turk Telekomunikasyon AS's Financial Strength Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Turk Telekomunikasyon AS's Financial Strength distribution charts can be found below:

* The bar in red indicates where Turk Telekomunikasyon AS's Financial Strength falls into.


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Turk Telekomunikasyon AS 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:

Turk Telekomunikasyon AS's Interest Expense for the months ended in Dec. 2024 was $328 Mil. Its Operating Income for the months ended in Dec. 2024 was $531 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was $1,256 Mil.

Turk Telekomunikasyon AS's Interest Coverage for the quarter that ended in Dec. 2024 is

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

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

Turk Telekomunikasyon AS's Debt to Revenue Ratio for the quarter that ended in Dec. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(761.344 + 1255.621) / 5997.08
=0.34

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.

Turk Telekomunikasyon AS has a Z-score of 2.22, indicating it is in Grey Zones. This implies that Turk Telekomunikasyon AS 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 2.22 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.


Turk Telekomunikasyon AS  (OTCPK:TRKNY) 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.

Turk Telekomunikasyon AS has the Financial Strength Rank of 6.


Turk Telekomunikasyon AS Financial Strength Related Terms

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Turk Telekomunikasyon AS Business Description

Traded in Other Exchanges
Address
Turgut Ozal Bulvari, Aydinlikevler, Ankara, TUR, 06103
Turk Telekomunikasyon AS is a multi-play telecommunications company that provides broadband, mobile, and TV services for companies and individuals. The Group has two main segments; Fixed Line and Mobile. Fixed line services are provided by Turk Telekom, TTNet, Argela, Innova, Sebit, AssisTT, TTES, TT Venture, TT Destek Hizmetleri, and TTINT Group whereas mobile service is provided by TT Mobil. It generates the majority of its revenue from the Fixed Line segment.