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Amuse (TSE:4301) Financial Strength : 9 (As of Dec. 2023)


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What is Amuse Financial Strength?

Amuse has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Amuse Inc shows strong financial strength.

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.

Amuse's Interest Coverage for the quarter that ended in Dec. 2023 was 782.00. Amuse's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.00. As of today, Amuse's Altman Z-Score is 2.98.


Competitive Comparison of Amuse's Financial Strength

For the Entertainment subindustry, Amuse'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.


Amuse's Financial Strength Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Amuse's Financial Strength distribution charts can be found below:

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



Amuse 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:

Amuse's Interest Expense for the months ended in Dec. 2023 was 円-1 Mil. Its Operating Income for the months ended in Dec. 2023 was 円782 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was 円205 Mil.

Amuse's Interest Coverage for the quarter that ended in Dec. 2023 is

Interest Coverage=-1*Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*782/-1
=782.00

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. Amuse Inc has enough cash to cover all of its debt. Its financial situation is stable.

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

Amuse's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(6 + 205) / 67132
=0.00

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.

Amuse has a Z-score of 2.98, indicating it is in Grey Zones. This implies that Amuse 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 2.98 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.


Amuse  (TSE:4301) 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.

Amuse has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.


Amuse Financial Strength Related Terms

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Amuse (TSE:4301) Business Description

Traded in Other Exchanges
N/A
Address
20-1 Sakuragaoka-cho, Shibuya-ku, Tokyo, JPN, 150-0031
Amuse Inc is a Japan based integrated entertainment group. It is involved in the businesses of artist management business, media visual business, contents business, place management business, and other businesses. In artist management business, the company is engaged in the production of concerts, stage performances of artists, planning and production of stage performances and events, management of fan clubs and sales of a variety of goods and products, television, radio and commercial appearances, and production and distribution of record masters and management of copyright. In media visual business, the company manages image-based entertainment, such as producing and distributing visual software such as TV shows and movies and producing and selling DVDs.

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