What is Rogers Communications Financial Strength?
Rogers Communications has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Rogers Communications Inc 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.
Rogers Communications's Interest Coverage for the quarter that ended in Dec. 2023 was 2.10.
Rogers Communications's debt to revenue ratio for the quarter that ended in Dec. 2023 was 2.12.
As of today, Rogers Communications's Altman Z-Score is 0.92.
Competitive Comparison of Rogers Communications's Financial Strength
For the Telecom Services subindustry, Rogers Communications'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.
Rogers Communications's Financial Strength Distribution in the Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Rogers Communications's Financial Strength distribution charts can be found below:
* The bar in red indicates where Rogers Communications's Financial Strength falls into.
Rogers Communications 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:
Rogers Communications's Interest Expense for the
months ended in Dec. 2023 was C$-552 Mil. Its Operating Income for the
months ended in Dec. 2023 was C$1,157 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was C$41,844 Mil.
Rogers Communications's Interest Coverage for the quarter that ended in Dec. 2023 is
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Rogers Communications Inc interest coverage is 2.17, which is low.
2. Debt to revenue ratio. The lower, the better.
Rogers Communications's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is
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.
Rogers Communications has a Z-score of 0.92, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 0.92 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.
Rogers Communications (TSX:RCI.B) Business Description
Traded in Other Exchanges
Address
333 Bloor Street East, 10th Floor, Toronto, ON, CAN, M4W 1G9
Rogers Communications is the largest wireless service provider in Canada, with its more than 10 million subscribers equating to one third of the total Canadian market. Its wireless business accounted for more than half of total revenue and has increasingly been providing a bigger portion of total company sales over the last several years. Rogers' cable segment, which provides about 40% of total revenue after acquiring Shaw, offers home internet, television, and landline phone service to consumers and businesses. Remaining sales come from Rogers' media unit, which owns and operates various television and radio stations and the Toronto Blue Jays. Rogers' significant exposure to sports also includes ownership stakes in the Toronto Maple Leafs, Raptors, FC, and Argonauts.
Rogers Communications (TSX:RCI.B) Headlines
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