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ADN Telecom (DHA:ADNTEL) Financial Strength

: 2 (As of . 20)
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ADN Telecom has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

ADN Telecom Ltd displays poor financial strength. Usually, this is caused by too much debt for the company.

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.

ADN Telecom did not have earnings to cover the interest expense. As of today, ADN Telecom's Altman Z-Score is 0.00.


Competitive Comparison

For the Telecom Services subindustry, ADN Telecom'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.


ADN Telecom Financial Strength Distribution

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

* The bar in red indicates where ADN Telecom's Financial Strength falls into.



ADN Telecom 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:

ADN Telecom's Interest Expense for the months ended in . 20 was BDT0.00 Mil. Its Operating Income for the months ended in . 20 was BDT0.00 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in . 20 was BDT0.00 Mil.

ADN Telecom's Interest Coverage for the quarter that ended in . 20 is

ADN Telecom had no long-term debt (1).

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

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

ADN Telecom's Debt to Revenue Ratio for the quarter that ended in . 20 is

Debt to Revenue Ratio=Total Debt (Q: . 20 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=( + ) / 0
=N/A

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.

ADN Telecom has a Z-score of 0.00, indicating it is in Distress Zones. This implies bankrupcy 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.


ADN Telecom  (DHA:ADNTEL) 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.

ADN Telecom has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


ADN Telecom Financial Strength Related Terms

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ADN Telecom (DHA:ADNTEL) Business Description

Comparable Companies
Traded in Other Exchanges
N/A
Address
17, Mohakhali Commercial Area, Red Crescent Concord Tower (19th Floor), Dhaka, BGD, 1212
ADN Telecom Ltd is a ISP, MPLS, IPLC, and IP Telephony service provider in Bangladesh. The company owns a diverse access network across the whole country through wireless, fiber, and satellite infrastructure. It offers internet services, global multi protocol level switching, international private leased circuit, domestic multi protocol level switching, satellite based services, IP telephony, video conferencing, data center services, and managed services.

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