GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Ribbon Communications Inc (STU:NU42) » Definitions » Profitability Rank

Ribbon Communications (STU:NU42) Profitability Rank : 2 (As of Sep. 2024)


View and export this data going back to 2023. Start your Free Trial

What is Ribbon Communications Profitability Rank?

Ribbon Communications has the Profitability Rank of 2. It has had trouble to make a profit.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

Ribbon Communications's Operating Margin % for the quarter that ended in Sep. 2024 was 1.36%. As of today, Ribbon Communications's Piotroski F-Score is 5.


Competitive Comparison of Ribbon Communications's Profitability Rank

For the Telecom Services subindustry, Ribbon Communications's Profitability Rank, along with its competitors' market caps and Profitability Rank 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.


Ribbon Communications's Profitability Rank Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Ribbon Communications's Profitability Rank distribution charts can be found below:

* The bar in red indicates where Ribbon Communications's Profitability Rank falls into.



Ribbon Communications Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Ribbon Communications has the Profitability Rank of 2. It has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Ribbon Communications's Operating Margin % for the quarter that ended in Sep. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=2.583 / 189.424
=1.36 %

* 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.

2. Piotroski F-Score

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Ribbon Communications has an F-score of 5 indicating the company's financial situation is typical for a stable company.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

4. Consistency of the profitability

5. Predictability Rank


Ribbon Communications Profitability Rank Related Terms

Thank you for viewing the detailed overview of Ribbon Communications's Profitability Rank provided by GuruFocus.com. Please click on the following links to see related term pages.


Ribbon Communications Business Description

Traded in Other Exchanges
Address
6500 Chase Oaks Boulevard, Suite 100, Plano, TX, USA, 75023
Ribbon Communications Inc provides network solutions to service providers and enterprises. It enables service providers and enterprises to modernize their communications networks and provide secure real-time communications solutions to their customers and employees. It has two separate lines of business; the Cloud and Edge segment, and the IP Optical Networks segment. The majority of the revenue for the company is generated from its Cloud and Edge segment that provides secure and reliable software and hardware products, solutions, and services for VoIP communications, Voice Over LTE among others to service providers and enterprise customers. The company generates majority of its revenue from United States.

Ribbon Communications Headlines

No Headlines