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Sun TV Network (BOM:532733) Altman Z-Score

: 20.61 (As of Today)
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The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.

Good Sign:

Altman Z-score of 20.29 is strong.

Sun TV Network has a Altman Z-Score of 20.61, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Sun TV Network's Altman Z-Score or its related term are showing as below:

BOM:532733' s Altman Z-Score Range Over the Past 10 Years
Min: 11.8   Med: 17.69   Max: 57.34
Current: 20.29

During the past 13 years, Sun TV Network's highest Altman Z-Score was 57.34. The lowest was 11.80. And the median was 17.69.


Sun TV Network Altman Z-Score Historical Data

The historical data trend for Sun TV Network's Altman Z-Score can be seen below:

* 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.

* Premium members only.

Sun TV Network Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 25.67 11.80 15.44 18.66 14.13

Sun TV Network Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Altman Z-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 16.97 14.13 14.80 20.73 23.80

Competitive Comparison

For the Broadcasting subindustry, Sun TV Network's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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.


Sun TV Network Altman Z-Score Distribution

For the Media - Diversified industry and Communication Services sector, Sun TV Network's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Sun TV Network's Altman Z-Score falls into.



Sun TV Network Altman Z-Score Calculation

Altman 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.

Sun TV Network's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.5378+1.4*0+3.3*0.2371+0.6*31.3353+1.0*0.3834
=20.61

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Dec. 2023:
Total Assets was ₹108,525 Mil.
Total Current Assets was ₹65,612 Mil.
Total Current Liabilities was ₹7,244 Mil.
Retained Earnings was ₹0 Mil.
Pre-Tax Income was 6118.5 + 6191.1 + 8268.3 + 5066.5 = ₹25,644 Mil.
Interest Expense was -18.5 + -16.8 + -31.5 + -24.7 = ₹-92 Mil.
Revenue was 9231.5 + 10484.5 + 13492.2 + 8403.6 = ₹41,612 Mil.
Market Cap (Today) was ₹239,505 Mil.
Total Liabilities was ₹7,643 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(65612.3 - 7244.1)/108525.3
=0.5378

X2=Retained Earnings/Total Assets
=0/108525.3
=0

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(25644.4 - -91.5)/108525.3
=0.2371

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=239504.928/7643.3
=31.3353

X5=Revenue/Total Assets
=41611.8/108525.3
=0.3834

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Sun TV Network has a Altman Z-Score of 20.61 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Sun TV Network  (BOM:532733) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Sun TV Network Altman Z-Score Related Terms

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Sun TV Network (BOM:532733) Business Description

Traded in Other Exchanges
Address
73, MRC Nagar Main Road, Murasoli Maran Towers, MRC Nagar, Chennai, TN, IND, 600028
Sun TV Network Ltd is a media and entertainment company. The group owns and operates a series of television networks across four languages in the news, music, action, life, movies, kids, and comedy genres. It also airs FM stations in several Indian languages. Its business activities are reported under a single segment being Broadcasting. The company generates revenues from advertising, broadcasting fees, International subscriptions, other subscriptions, movie distribution, and content trading. Geographically, the group is focused on the Indian market with few operations outside India.

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