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Fujitsu (TSE:6702) Financial Strength : 6 (As of Mar. 2024)


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What is Fujitsu Financial Strength?

Fujitsu has the Financial Strength Rank of 6.

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.

Fujitsu's Interest Coverage for the quarter that ended in Mar. 2024 was 47.81. Fujitsu's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.06. As of today, Fujitsu's Altman Z-Score is 3.62.


Competitive Comparison of Fujitsu's Financial Strength

For the Information Technology Services subindustry, Fujitsu'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.


Fujitsu's Financial Strength Distribution in the Software Industry

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

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



Fujitsu 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:

Fujitsu's Interest Expense for the months ended in Mar. 2024 was 円-2,346 Mil. Its Operating Income for the months ended in Mar. 2024 was 円112,171 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was 円108,984 Mil.

Fujitsu'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*112171/-2346
=47.81

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

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

Fujitsu'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
=(136692 + 108984) / 4453348
=0.06

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.

Fujitsu has a Z-score of 3.62, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.62 is strong.

* 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.


Fujitsu  (TSE:6702) 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.

Fujitsu has the Financial Strength Rank of 6.


Fujitsu Financial Strength Related Terms

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


Fujitsu (TSE:6702) Business Description

Traded in Other Exchanges
Address
Shiodome City Center, 1-5-2 Higashi-Shimbashi, Minato-ku, Tokyo, JPN, 105-7123
Fujitsu Ltd delivers total solutions in the field of information and communication technology. The company provides solutions/system integration services focused on information system consulting and construction, and infrastructure services centered on outsourcing services. Fujitsu provides services across a wide range of countries and regions, including Europe, the Americas, Asia, and Oceania. It operates in three segments namely, Technology Solutions; Ubiqitous Solutions and Device Solutions. Ubiquitous Solutions consists of PCs, mobile phones, and mobilewear. In PCs, Fujitsu's lineup includes desktop and laptop PCs known for energy efficiency, security, and other enhanced features, as well as water- and dust-resistant tablets.

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