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VS Media Holdings (VS Media Holdings) Financial Strength : 4 (As of Dec. 2023)


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What is VS Media Holdings Financial Strength?

VS Media Holdings has the Financial Strength Rank of 4.

Warning Sign:

VS Media Holdings Ltd displays poor financial strength. Usually, this is caused by too much debt for the company.

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.

VS Media Holdings did not have earnings to cover the interest expense. VS Media Holdings's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.40. As of today, VS Media Holdings's Altman Z-Score is -2.92.


Competitive Comparison of VS Media Holdings's Financial Strength

For the Advertising Agencies subindustry, VS Media Holdings'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.


VS Media Holdings's Financial Strength Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, VS Media Holdings's Financial Strength distribution charts can be found below:

* The bar in red indicates where VS Media Holdings's Financial Strength falls into.



VS Media Holdings 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:

VS Media Holdings's Interest Expense for the months ended in Dec. 2023 was $-0.14 Mil. Its Operating Income for the months ended in Dec. 2023 was $-4.23 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $0.21 Mil.

VS Media Holdings's Interest Coverage for the quarter that ended in Dec. 2023 is

VS Media Holdings did not have earnings to cover the interest expense.

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

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

VS Media Holdings'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
=(3.349 + 0.208) / 8.928
=0.40

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.

VS Media Holdings has a Z-score of -2.92, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of -2.92 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.


VS Media Holdings  (NAS:VSME) 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.

VS Media Holdings has the Financial Strength Rank of 4.


VS Media Holdings Financial Strength Related Terms

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VS Media Holdings (VS Media Holdings) Business Description

Traded in Other Exchanges
N/A
Address
75 Hung To Road, 6th Floor, KOHO, Kwun Tong, Hong Kong, HKG
VS Media Holdings Ltd manages a global network of digital Creators who create and publish content to social media platforms such as YouTube, Facebook, Instagram, and TikTok. Its Creators include influencers, KOLs-Key Opinion Leaders, bloggers, and other content creators who cultivate fanbases on social media platforms. The company's business provides value to two major business stakeholders: Creators and Brands. Its Value to Creators: It empowers and supports Creators by providing them with production facilities, training, and funding to produce quality content. Its Value to Brands: the company bridges the divide between Brands and Creators by helping Brands reach their target audience effectively by advising on content strategy and budget and recommending specific Creators.