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Network People Services Technologies (NSE:NPST) Financial Strength : 10 (As of Sep. 2023)


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What is Network People Services Technologies Financial Strength?

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

Good Sign:

Network People Services Technologies 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.

Network People Services Technologies's Interest Coverage for the quarter that ended in Sep. 2023 was 872.55. Network People Services Technologies's debt to revenue ratio for the quarter that ended in Sep. 2023 was 0.00. As of today, Network People Services Technologies's Altman Z-Score is 161.21.


Competitive Comparison of Network People Services Technologies's Financial Strength

For the Software - Application subindustry, Network People Services Technologies'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.


Network People Services Technologies's Financial Strength Distribution in the Software Industry

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

* The bar in red indicates where Network People Services Technologies's Financial Strength falls into.



Network People Services Technologies 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:

Network People Services Technologies's Interest Expense for the months ended in Sep. 2023 was ₹-0.1 Mil. Its Operating Income for the months ended in Sep. 2023 was ₹127.4 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was ₹1.0 Mil.

Network People Services Technologies's Interest Coverage for the quarter that ended in Sep. 2023 is

Interest Coverage=-1*Operating Income (Q: Sep. 2023 )/Interest Expense (Q: Sep. 2023 )
=-1*127.393/-0.146
=872.55

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. Network People Services Technologies Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

Network People Services Technologies's Debt to Revenue Ratio for the quarter that ended in Sep. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0.697 + 1.019) / 1048.778
=0.00

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.

Network People Services Technologies has a Z-score of 161.21, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 161.21 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.


Network People Services Technologies  (NSE:NPST) 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.

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


Network People Services Technologies Financial Strength Related Terms

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Network People Services Technologies (NSE:NPST) Business Description

Traded in Other Exchanges
N/A
Address
Road No. 22, 306, 3rd Floor, Lodha Supremus II, Wagle Industrial Estate, Thane (West), Mumbai, MH, IND, 400604
Network People Services Technologies Ltd is a banking technology service provider that offers software and mobility solutions to the banking and finance sector. It offers digital transformation solutions such as IMPS, Digital Wallet, UPI, and other smart art solutions. The company further offers software designing, consulting, development, and manpower provisioning services.

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