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Intelsat (LTS:0DZ3) Financial Strength

: 2 (As of Sep. 2021)
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Intelsat 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.

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.

Intelsat's Interest Coverage for the quarter that ended in Sep. 2021 was 0.57. Intelsat's debt to revenue ratio for the quarter that ended in Sep. 2021 was 2.93. As of today, Intelsat's Altman Z-Score is 0.00.


Competitive Comparison

For the Telecom Services subindustry, Intelsat'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.

   

Intelsat Financial Strength Distribution

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

* The bar in red indicates where Intelsat's Financial Strength falls in comparison to its industry or sector. The grey bar indicates the Financial Strength's extreme value range as defined by GuruFocus.



Intelsat 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:

Intelsat's Interest Expense for the months ended in Sep. 2021 was $-127 Mil. Its Operating Income for the months ended in Sep. 2021 was $72 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2021 was $0 Mil.

Intelsat's Interest Coverage for the quarter that ended in Sep. 2021 is

Interest Coverage=-1*Operating Income (Q: Sep. 2021 )/Interest Expense (Q: Sep. 2021 )
=-1*72.239/-126.6
=0.57

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

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

Intelsat's Debt to Revenue Ratio for the quarter that ended in Sep. 2021 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2021 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(6162.315 + 0) / 2104.38
=2.93

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.

Intelsat 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.


Intelsat  (LTS:0DZ3) 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.

Intelsat 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.


Intelsat Financial Strength Related Terms

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


Intelsat (LTS:0DZ3) Business Description

Intelsat logo
Comparable Companies
Traded in Other Exchanges
Address
4 rue Albert Borschette, Luxembourg, LUX, L-1246
Intelsat SA is a Luxembourg-based company which operates satellite services business. It is engaged in providing diversified communications services to the media companies, fixed and wireless telecommunications operators, data networking service providers for enterprise and mobile applications in the air and on the seas, and a multinational corporation. In addition, it provides commercial satellite communication services to the United States government and other select military organizations and their contractors. Intelsat operates through a single segment being Providing satellite services. The company earns the majority of its revenue from North America.

Intelsat (LTS:0DZ3) Headlines

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