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Branding Technology (TSE:7067) Financial Strength : 8 (As of Dec. 2023)


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What is Branding Technology Financial Strength?

Branding Technology has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Branding Technology 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.

Branding Technology's Interest Coverage for the quarter that ended in Dec. 2023 was 65.37. Branding Technology's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.03. As of today, Branding Technology's Altman Z-Score is 5.28.


Competitive Comparison of Branding Technology's Financial Strength

For the Advertising Agencies subindustry, Branding Technology'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.


Branding Technology's Financial Strength Distribution in the Media - Diversified Industry

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

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



Branding Technology 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:

Branding Technology's Interest Expense for the months ended in Dec. 2023 was 円-0 Mil. Its Operating Income for the months ended in Dec. 2023 was 円17 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was 円42 Mil.

Branding Technology'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*16.996/-0.26
=65.37

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

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

Branding Technology'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
=(99.996 + 41.686) / 4665.268
=0.03

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.

Branding Technology has a Z-score of 5.28, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 5.28 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.


Branding Technology  (TSE:7067) 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.

Branding Technology has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.


Branding Technology Financial Strength Related Terms

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Branding Technology (TSE:7067) Business Description

Traded in Other Exchanges
N/A
Address
15-13 Teito Shibuya Building, 4th Floor - 5th Floor, Nanpeidaicho, Shibuya-ku, Tokyo, JPN, 150-0036
Branding Technology Inc is a consulting and marketing solutions company for small and medium businesses in Japan. It offers Media production, internet advertising, content production, consulting and operating media solutions.

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