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Cellcom Israel (Cellcom Israel) Financial Strength : 5 (As of Dec. 2023)


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What is Cellcom Israel Financial Strength?

Cellcom Israel has the Financial Strength Rank of 5.

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.

Cellcom Israel's Interest Coverage for the quarter that ended in Dec. 2023 was 5.90. Cellcom Israel's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.67. As of today, Cellcom Israel's Altman Z-Score is 1.42.


Competitive Comparison of Cellcom Israel's Financial Strength

For the Telecom Services subindustry, Cellcom Israel'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.


Cellcom Israel's Financial Strength Distribution in the Telecommunication Services Industry

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

* The bar in red indicates where Cellcom Israel's Financial Strength falls into.



Cellcom Israel 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:

Cellcom Israel's Interest Expense for the months ended in Dec. 2023 was $-3 Mil. Its Operating Income for the months ended in Dec. 2023 was $15 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $577 Mil.

Cellcom Israel'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*15.415/-2.613
=5.90

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

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

Cellcom Israel'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
=(204.05 + 577.139) / 1172.568
=0.67

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.

Cellcom Israel has a Z-score of 1.42, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.42 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.


Cellcom Israel  (OTCPK:CELJF) 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.

Cellcom Israel has the Financial Strength Rank of 5.


Cellcom Israel Financial Strength Related Terms

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Cellcom Israel (Cellcom Israel) Business Description

Traded in Other Exchanges
Address
10 Hagavish Street, Netanya, ISR, 4250708
Cellcom Israel Ltd is the largest wireless provider in Israel and holds about one third of the market. The company offers basic voice services and data services such as Web browsing and music downloads. Cellcom is also launching a next-generation wireless service that supports higher data capacity. The company went public in February 2007, and its largest shareholder, Discount Investment, owns about 47% of its shares.