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DC Infotech And Communication (NSE:DCI) Financial Strength : 6 (As of Mar. 2024)


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What is DC Infotech And Communication Financial Strength?

DC Infotech And Communication 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.

DC Infotech And Communication's Interest Coverage for the quarter that ended in Mar. 2024 was 4.30. DC Infotech And Communication's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.06. As of today, DC Infotech And Communication's Altman Z-Score is 3.92.


Competitive Comparison of DC Infotech And Communication's Financial Strength

For the Electronics & Computer Distribution subindustry, DC Infotech And Communication'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.


DC Infotech And Communication's Financial Strength Distribution in the Hardware Industry

For the Hardware industry and Technology sector, DC Infotech And Communication's Financial Strength distribution charts can be found below:

* The bar in red indicates where DC Infotech And Communication's Financial Strength falls into.



DC Infotech And Communication 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:

DC Infotech And Communication's Interest Expense for the months ended in Mar. 2024 was ₹-15 Mil. Its Operating Income for the months ended in Mar. 2024 was ₹66 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ₹0 Mil.

DC Infotech And Communication's Interest Coverage for the quarter that ended in Mar. 2024 is

Interest Coverage=-1*Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*66.469/-15.471
=4.30

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

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

DC Infotech And Communication's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(375.085 + 0) / 6183.432
=0.06

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.

DC Infotech And Communication has a Z-score of 3.92, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.92 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.


DC Infotech And Communication  (NSE:DCI) 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.

DC Infotech And Communication has the Financial Strength Rank of 6.


DC Infotech And Communication Financial Strength Related Terms

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DC Infotech And Communication (NSE:DCI) Business Description

Traded in Other Exchanges
Address
Mogra Road, Unit No. 2, Aristocrate, Ground Floor, Lajya Compound, Andheri (East), Mumbai, MH, IND, 400069
DC Infotech And Communication Ltd is an IT Solution distribution company. The company has two operating segments; Products, and Security Software and services covering products like cabinets, motherboards, networking, security, surveillance, wireless, broadband, digital signage, firewalls, desktop virtualization, power solutions, and other solutions like network performance, digital performance, cloud security, enterprise security solutions, and other services pertaining to IT networking, security, and unified communication solutions.