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NTT DOCOMO (TSE:9437) Financial Strength : 0 (As of Sep. 2020)


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What is NTT DOCOMO Financial Strength?

NTT DOCOMO has the Financial Strength Rank of 0.

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.

NTT DOCOMO's Interest Coverage for the quarter that ended in Sep. 2020 was 401.15. NTT DOCOMO's debt to revenue ratio for the quarter that ended in Sep. 2020 was 0.08. As of today, NTT DOCOMO's Altman Z-Score is 0.00.


Competitive Comparison of NTT DOCOMO's Financial Strength

For the Telecom Services subindustry, NTT DOCOMO'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.


NTT DOCOMO's Financial Strength Distribution in the Telecommunication Services Industry

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

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



NTT DOCOMO 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:

NTT DOCOMO's Interest Expense for the months ended in Sep. 2020 was 円-709 Mil. Its Operating Income for the months ended in Sep. 2020 was 円284,415 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2020 was 円293,221 Mil.

NTT DOCOMO's Interest Coverage for the quarter that ended in Sep. 2020 is

Interest Coverage=-1*Operating Income (Q: Sep. 2020 )/Interest Expense (Q: Sep. 2020 )
=-1*284415/-709
=401.15

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

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

NTT DOCOMO's Debt to Revenue Ratio for the quarter that ended in Sep. 2020 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2020 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(82730 + 293221) / 4737476
=0.08

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.

NTT DOCOMO has a Z-score of 0.00, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

* 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.


NTT DOCOMO  (TSE:9437) 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.

NTT DOCOMO has the Financial Strength Rank of 0.


NTT DOCOMO Financial Strength Related Terms

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NTT DOCOMO (TSE:9437) Business Description

Traded in Other Exchanges
N/A
Address
Sanno Park Tower, 11-1, Nagata-cho 2-chome, Chiyoda-ku, Tokyo, JPN, 100-6150
NTT DoCoMo is Japan's largest wireless telephone operator. It has 78 million subscribers, leading to its market share of approximately 44%. The firm has been a technological leader, introducing wireless Internet access through its i-mode service in 1999, along with the ability to use a handset like a credit card. NTT DoCoMo also owns minority stakes in Philippine Long Distance Telephone, Hutchison Telecom Hong Kong Holdings, and other smaller phone companies. The firm's objective is to have the highest-quality network and customer service in Japan.

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