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Net Servicos De Comunicacao (BSP:NETC4.PFD) Financial Strength : 0 (As of Dec. 2013)


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What is Net Servicos De Comunicacao Financial Strength?

Net Servicos De Comunicacao 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.

Net Servicos De Comunicacao's Interest Coverage for the quarter that ended in Dec. 2013 was 2.23. Net Servicos De Comunicacao's debt to revenue ratio for the quarter that ended in Dec. 2013 was 0.27. As of today, Net Servicos De Comunicacao's Altman Z-Score is 1.83.


Competitive Comparison of Net Servicos De Comunicacao's Financial Strength

For the Broadcasting subindustry, Net Servicos De Comunicacao'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.


Net Servicos De Comunicacao's Financial Strength Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Net Servicos De Comunicacao's Financial Strength distribution charts can be found below:

* The bar in red indicates where Net Servicos De Comunicacao's Financial Strength falls into.



Net Servicos De Comunicacao 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:

Net Servicos De Comunicacao's Interest Expense for the months ended in Dec. 2013 was R$-471.83 Mil. Its Operating Income for the months ended in Dec. 2013 was R$1,053.80 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2013 was R$1,738.04 Mil.

Net Servicos De Comunicacao's Interest Coverage for the quarter that ended in Dec. 2013 is

Interest Coverage=-1*Operating Income (Q: Dec. 2013 )/Interest Expense (Q: Dec. 2013 )
=-1*1053.801/-471.826
=2.23

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

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

Net Servicos De Comunicacao's Debt to Revenue Ratio for the quarter that ended in Dec. 2013 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2013 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(919.281 + 1738.036) / 9708.757
=0.27

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.

Net Servicos De Comunicacao has a Z-score of 1.83, indicating it is in Grey Zones. This implies that Net Servicos De Comunicacao is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

* 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.


Net Servicos De Comunicacao  (BSP:NETC4.PFD) 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.

Net Servicos De Comunicacao has the Financial Strength Rank of 0.


Net Servicos De Comunicacao Financial Strength Related Terms

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Net Servicos De Comunicacao (BSP:NETC4.PFD) Business Description

Traded in Other Exchanges
N/A
Address
Net Servicos de Comunicacao SA through its holdings provides pay-television and pay-per-view programming, digital cable, high-definition cable television with digital video recorder, broadband Internet service & fixed line telephony service.

Net Servicos De Comunicacao (BSP:NETC4.PFD) Headlines

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