What is Techmatrix Financial Strength?
Techmatrix 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.
Techmatrix's Interest Coverage for the quarter that ended in Sep. 2024 was 80.70.
Techmatrix's debt to revenue ratio for the quarter that ended in Sep. 2024 was 0.05.
As of today, Techmatrix's Altman Z-Score is 2.10.
Competitive Comparison of Techmatrix's Financial Strength
For the Information Technology Services subindustry, Techmatrix'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.
Techmatrix's Financial Strength Distribution in the Software Industry
For the Software industry and Technology sector, Techmatrix's Financial Strength distribution charts can be found below:
* The bar in red indicates where Techmatrix's Financial Strength falls into.
Techmatrix 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:
Techmatrix's Interest Expense for the
months ended in Sep. 2024 was 円-24 Mil. Its Operating Income for the
months ended in Sep. 2024 was 円1,910 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was 円2,511 Mil.
Techmatrix's Interest Coverage for the quarter that ended in Sep. 2024 is
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Techmatrix Corp has enough cash to cover all of its debt. Its financial situation is stable.
2. Debt to revenue ratio. The lower, the better.
Techmatrix's Debt to Revenue Ratio for the quarter that ended in Sep. 2024 is
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.
Techmatrix has a Z-score of 2.10, indicating it is in Grey Zones. This implies that Techmatrix 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 2.1 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.
Techmatrix Business Description
Traded in Other Exchanges
N/A
Address
3-11-24 Mita Minato-ku, International Industrial Mita Second Building, Tokyo, JPN, 1088588
Techmatrix Corp is engaged in the information technology business and consulting business. Its business activities are divided into two operating divisions including Information Infrastructure Business that provides network security solutions and maintenance, operation and monitoring services combining its own technologies with overseas advanced technologies and products. Application service business provides its own package products development and cloud services in medical, customer-relationship management (CRM) and internet service fields. In addition, the company also offers products and solutions for outsourcing development of systems such as WEB and finance fields.
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