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Datamatics Global Services (BOM:532528) Financial Strength : 10 (As of Mar. 2024)


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What is Datamatics Global Services Financial Strength?

Datamatics Global Services has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Datamatics Global Services 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.

Datamatics Global Services's Interest Coverage for the quarter that ended in Mar. 2024 was 124.09. Datamatics Global Services's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.01. As of today, Datamatics Global Services's Altman Z-Score is 10.57.


Competitive Comparison of Datamatics Global Services's Financial Strength

For the Information Technology Services subindustry, Datamatics Global Services'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.


Datamatics Global Services's Financial Strength Distribution in the Software Industry

For the Software industry and Technology sector, Datamatics Global Services's Financial Strength distribution charts can be found below:

* The bar in red indicates where Datamatics Global Services's Financial Strength falls into.



Datamatics Global Services 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:

Datamatics Global Services's Interest Expense for the months ended in Mar. 2024 was ₹-5 Mil. Its Operating Income for the months ended in Mar. 2024 was ₹558 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ₹75 Mil.

Datamatics Global Services'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*558.4/-4.5
=124.09

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. Datamatics Global Services Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

Datamatics Global Services'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
=(99.2 + 74.6) / 16508.4
=0.01

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.

Datamatics Global Services has a Z-score of 10.57, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 10.57 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.


Datamatics Global Services  (BOM:532528) 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.

Datamatics Global Services has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.


Datamatics Global Services Financial Strength Related Terms

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Datamatics Global Services (BOM:532528) Business Description

Traded in Other Exchanges
Address
Street Number 17, Plot Number 58, Knowledge Centre, MIDC, Andheri (East), Mumbai, MH, IND, 400093
Datamatics Global Services Ltd is an Information technology(IT) company. The company operates in three segments: Digital Operations, Digital Experiences, Digital Technologies. The company offers Robotic Process Automation, Artificial Intelligence, Machine Learning, Hyperautomation, cloud solutions, Internet of Things (IoT), Consulting, and other solutions. Some of its products include TruBot, TruCap+, iPM, Trade Finance, TruBI, and TruAI. The company offers its services to different industries such as Banking & Financial Services, Publishing, Healthcare, Insurance, Transportation, Retail & E-Commerce, and others. Its geographical segments include the United States, UK and Europe, and the Rest of the World. The company generates the majority of its revenue from USA.

Datamatics Global Services (BOM:532528) Headlines

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