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SS&C Technologies Holdings (BSP:S1SN34) Financial Strength : 4 (As of Dec. 2023)


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What is SS&C Technologies Holdings Financial Strength?

SS&C Technologies Holdings has the Financial Strength Rank of 4.

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.

SS&C Technologies Holdings's Interest Coverage for the quarter that ended in Dec. 2023 was 2.66. SS&C Technologies Holdings's debt to revenue ratio for the quarter that ended in Dec. 2023 was 1.23. As of today, SS&C Technologies Holdings's Altman Z-Score is 1.58.


Competitive Comparison of SS&C Technologies Holdings's Financial Strength

For the Software - Application subindustry, SS&C Technologies Holdings'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.


SS&C Technologies Holdings's Financial Strength Distribution in the Software Industry

For the Software industry and Technology sector, SS&C Technologies Holdings's Financial Strength distribution charts can be found below:

* The bar in red indicates where SS&C Technologies Holdings's Financial Strength falls into.



SS&C Technologies Holdings 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:

SS&C Technologies Holdings's Interest Expense for the months ended in Dec. 2023 was R$-616 Mil. Its Operating Income for the months ended in Dec. 2023 was R$1,638 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was R$33,650 Mil.

SS&C Technologies Holdings'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*1637.513/-616.395
=2.66

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

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

SS&C Technologies Holdings'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
=(252.34 + 33649.866) / 27666.232
=1.23

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.

SS&C Technologies Holdings has a Z-score of 1.58, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.58 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.


SS&C Technologies Holdings  (BSP:S1SN34) 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.

SS&C Technologies Holdings has the Financial Strength Rank of 4.


SS&C Technologies Holdings Financial Strength Related Terms

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SS&C Technologies Holdings (BSP:S1SN34) Business Description

Traded in Other Exchanges
Address
80 Lamberton Road, Windsor, CT, USA, 06095
SS&C Technologies provides software products and software-enabled services to a variety of customers primarily in financial services but also healthcare firms. SS&C GlobeOp provides fund administration services to alternative and traditional asset managers. In addition, SS&C provides portfolio accounting, portfolio management, trading, banking/lending, and other software to asset managers, banks, and financial advisors. SS&C's purchase of Intralinks makes it a leading player in Virtual Data Room solutions. With its purchase of DST Systems, SS&C gained a foothold in the healthcare industry with pharmacy health management solutions and medical claim administration services.

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