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SHL Telemedicine (XSWX:SHLTN) Financial Strength : 6 (As of Dec. 2023)


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What is SHL Telemedicine Financial Strength?

SHL Telemedicine has the Financial Strength Rank of 6.

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.

SHL Telemedicine did not have earnings to cover the interest expense. SHL Telemedicine's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.35. As of today, SHL Telemedicine's Altman Z-Score is 1.12.


Competitive Comparison of SHL Telemedicine's Financial Strength

For the Health Information Services subindustry, SHL Telemedicine'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.


SHL Telemedicine's Financial Strength Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, SHL Telemedicine's Financial Strength distribution charts can be found below:

* The bar in red indicates where SHL Telemedicine's Financial Strength falls into.



SHL Telemedicine 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:

SHL Telemedicine's Interest Expense for the months ended in Dec. 2023 was CHF0.11 Mil. Its Operating Income for the months ended in Dec. 2023 was CHF-2.50 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was CHF13.20 Mil.

SHL Telemedicine's Interest Coverage for the quarter that ended in Dec. 2023 is

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

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

SHL Telemedicine'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
=(3.974 + 13.2) / 48.55
=0.35

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.

SHL Telemedicine has a Z-score of 1.12, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.12 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.


SHL Telemedicine  (XSWX:SHLTN) 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.

SHL Telemedicine has the Financial Strength Rank of 6.


SHL Telemedicine Financial Strength Related Terms

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SHL Telemedicine (XSWX:SHLTN) Business Description

Traded in Other Exchanges
Address
90 Yigal Alon Street, Tel Aviv, ISR, 67891
SHL Telemedicine Ltd develops and markets personal telemedicine solutions. It consists of the transmission of medical data by an individual, from a remote location to a medical call center through telecommunication networks. The company offers solutions to subscribing patients, health insurance companies, hospitals, clinics, and physicians. It provides healthcare professional solutions to patients suffering from congestive heart failure, chronic obstructive pulmonary disease, and readmission solutions for reducing heart-related readmissions. In addition, consumer solutions include cardiac monitoring services. The company's geographical segments Israel, Europe, and the rest of the world.

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