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Sunyard Technology Co (SHSE:600571) Financial Strength

: 8 (As of Dec. 2023)
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Sunyard Technology Co has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Sunyard Technology Co Ltd shows strong financial strength.

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.

Sunyard Technology Co's Interest Coverage for the quarter that ended in Dec. 2023 was 870.82. Sunyard Technology Co's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.00. As of today, Sunyard Technology Co's Altman Z-Score is 8.97.


Competitive Comparison

For the Software - Infrastructure subindustry, Sunyard Technology Co'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.


Sunyard Technology Co Financial Strength Distribution

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

* The bar in red indicates where Sunyard Technology Co's Financial Strength falls into.



Sunyard Technology Co 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:

Sunyard Technology Co's Interest Expense for the months ended in Dec. 2023 was ¥-0 Mil. Its Operating Income for the months ended in Dec. 2023 was ¥88 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was ¥2 Mil.

Sunyard Technology Co'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*87.953/-0.101
=870.82

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

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Sunyard Technology Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

Sunyard Technology Co'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
=(0.661 + 1.528) / 2918.256
=0.00

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.

Sunyard Technology Co has a Z-score of 8.97, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 8.97 is strong.

* 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.


Sunyard Technology Co  (SHSE:600571) 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.

Sunyard Technology Co has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.


Sunyard Technology Co Financial Strength Related Terms

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


Sunyard Technology Co (SHSE:600571) Business Description

Traded in Other Exchanges
N/A
Address
No. 3888 Jiangnan Avenue, Sunyard Technology Building, Binjiang District, Zhejiang Provincc, Hangzhou, Zhejiang, CHN, 310053
Sunyard Technology Co Ltd provides end-to-end professional solutions and products for financial institutions mainly in the banking industry. It specializes in financial payment terminals and financial card machines. It is engaged in the research and development, production and sales of financial information security products and payment and information security solutions.

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