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Sonic Foundry Financial Strength

: 4 (As of Mar. 2022)
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Sonic Foundry 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.

Sonic Foundry did not have earnings to cover the interest expense. Sonic Foundry's debt to revenue ratio for the quarter that ended in Mar. 2022 was 0.11. As of today, Sonic Foundry's Altman Z-Score is -13.18.


Competitive Comparison

For the Software - Application subindustry, Sonic Foundry'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.

   

Sonic Foundry Financial Strength Distribution

For the Software industry and Technology sector, Sonic Foundry's Financial Strength distribution charts can be found below:

* The bar in red indicates where Sonic Foundry's Financial Strength falls into.



Sonic Foundry 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:

Sonic Foundry's Interest Expense for the months ended in Mar. 2022 was $-0.01 Mil. Its Operating Income for the months ended in Mar. 2022 was $-1.26 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2022 was $1.90 Mil.

Sonic Foundry's Interest Coverage for the quarter that ended in Mar. 2022 is

Sonic Foundry did not have earnings to cover the interest expense.

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

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

Sonic Foundry's Debt to Revenue Ratio for the quarter that ended in Mar. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1.169 + 1.899) / 28.972
=0.11

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.

Sonic Foundry has a Z-score of -13.18, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of -13.18 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.


Sonic Foundry  (NAS:SOFO) 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.

Sonic Foundry has the Financial Strength Rank of 4.


Sonic Foundry Financial Strength Related Terms

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


Sonic Foundry Business Description

Sonic Foundry logo
Traded in Other Exchanges
N/A
Address
222 W. Washington Avenue, Madison, WI, USA, 53703
Sonic Foundry Inc is engaged in the business of providing video enterprise solutions and services for the digital-first, distance learning, and corporate communications market. It offers video capture, management, and Webcasting solutions in education, business, and government. The company also offers video solutions, including Mediasite Video Platform, Mediasite Video Cloud, Mediasite Capture Solutions, Mediasite Events, Mediasite Services, and Mediasite Customer Care. The company has a geographical presence in the United States, Europe, and the Middle East, Asia, and other places.
Executives
Jangda Taha director 3827 LINKLEA DRIVE HOUSTON TX 77025
St. Lawrence William director C/O NORTHERN POWER SYSTEMS CORP. 29 PITMAN ROAD BARRE VT 05641
Mozden Joe Jr director 3423 WILD PRAIRIE LN GENEVA IL 60134
Boyd Kelsy L director 2839 PLEASANT VIEW HTS COTTAGE GROVE WI 53527
Norregaard Michael officer: Chief Operating Officer 4891 ENCHANTED VALLEY ROAD MIDDLETON WI 53562
Murphy Nelson A director 2300 W INNES ST SALISBURY NC 28144
Slayton David director 701 WASHINGTON AVE N. SUITE #400 MINNEAPOLIS WI 55401
Kleinman David director
Kopko Frederick H Jr director 4901 S ELLIS AVE CHICAGO IL 60615
Wiegand Brian director 8215 GREENWAY BLVD, SUITE 340 MIDDLETON WI 53562
Burish Andrew D. 10 percent owner 8020 EXCELSIOR DRIVE MADISON WI 53717
Burish Mark D director HURLEY, BURISH, MILLIKEN S.C. 301 NORTH BROOM STREET MADISON WI 53703
Minor Kenneth A officer: Chief Financial Officer
Weis Gary director, officer: Chief Executive Officer & CTO
Lipps Robert M officer: Executive Vice President Sales 222 W. WASHINGTON AVE. MADISON WI 53703
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