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Desktop - Sigmanet Comunicacao Multimidia (BSP:DESK3) Financial Strength : 4 (As of Mar. 2025)


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What is Desktop - Sigmanet Comunicacao Multimidia Financial Strength?

Desktop - Sigmanet Comunicacao Multimidia has the Financial Strength Rank of 4.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and 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.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Desktop - Sigmanet Comunicacao Multimidia's Interest Coverage for the quarter that ended in Mar. 2025 was 1.53. Desktop - Sigmanet Comunicacao Multimidia's debt to revenue ratio for the quarter that ended in Mar. 2025 was 1.26. As of today, Desktop - Sigmanet Comunicacao Multimidia's Altman Z-Score is 1.01.


Competitive Comparison of Desktop - Sigmanet Comunicacao Multimidia's Financial Strength

For the Telecom Services subindustry, Desktop - Sigmanet Comunicacao Multimidia'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.


Desktop - Sigmanet Comunicacao Multimidia's Financial Strength Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Desktop - Sigmanet Comunicacao Multimidia's Financial Strength distribution charts can be found below:

* The bar in red indicates where Desktop - Sigmanet Comunicacao Multimidia's Financial Strength falls into.


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Desktop - Sigmanet Comunicacao Multimidia 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:

Desktop - Sigmanet Comunicacao Multimidia's Interest Expense for the months ended in Mar. 2025 was R$-64 Mil. Its Operating Income for the months ended in Mar. 2025 was R$99 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was R$1,400 Mil.

Desktop - Sigmanet Comunicacao Multimidia's Interest Coverage for the quarter that ended in Mar. 2025 is

Interest Coverage=-1*Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*98.594/-64.257
=1.53

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

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

Desktop - Sigmanet Comunicacao Multimidia's Debt to Revenue Ratio for the quarter that ended in Mar. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(89.237 + 1400.2) / 1178.344
=1.26

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.

Desktop - Sigmanet Comunicacao Multimidia has a Z-score of 1.01, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.01 is in distress zone. This implies bankruptcy 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.


Desktop - Sigmanet Comunicacao Multimidia  (BSP:DESK3) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Desktop - Sigmanet Comunicacao Multimidia has the Financial Strength Rank of 4.


Desktop - Sigmanet Comunicacao Multimidia Financial Strength Related Terms

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


Desktop - Sigmanet Comunicacao Multimidia Business Description

Traded in Other Exchanges
N/A
Address
10a Andar, Jardim Marchissolo, Estrada Teodor Condiev, 970, Sumare, SP, BRA, 13171105
Desktop - Sigmanet Comunicacao Multimidia SA is a telecommunications company focused on Internet access, television, and telephone.

Desktop - Sigmanet Comunicacao Multimidia Headlines

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