What is NTT Data Group Financial Strength?
NTT Data Group has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
NTT Data Group Corp 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.
NTT Data Group's Interest Coverage for the quarter that ended in Dec. 2023 was 2.79.
NTT Data Group's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.52.
As of today, NTT Data Group's Altman Z-Score is 1.50.
Competitive Comparison of NTT Data Group's Financial Strength
For the Information Technology Services subindustry, NTT Data Group'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.
NTT Data Group's Financial Strength Distribution in the Software Industry
For the Software industry and Technology sector, NTT Data Group's Financial Strength distribution charts can be found below:
* The bar in red indicates where NTT Data Group's Financial Strength falls into.
NTT Data Group 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:
NTT Data Group's Interest Expense for the
months ended in Dec. 2023 was 円-26,909 Mil. Its Operating Income for the
months ended in Dec. 2023 was 円75,188 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was 円1,537,364 Mil.
NTT Data Group's Interest Coverage for the quarter that ended in Dec. 2023 is
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. NTT Data Group Corp interest coverage is 3.55, which is low.
2. Debt to revenue ratio. The lower, the better.
NTT Data Group's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is
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.
NTT Data Group has a Z-score of 1.50, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 1.5 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.
NTT Data Group (TSE:9613) Business Description
Traded in Other Exchanges
Address
Toyosu Center Building, 3-3, Toyosu 3-chome, Koto-ku, Yubinbango, Tokyo, JPN, 135-6033
NTT Data Group Corp Formerly NTT Data Corp provides IT services to a wide range of business fields. The company's operations are divided into three segments: global, public and social infrastructure; enterprise and solutions; and financial. Each segment contributes approximately an even proportion of the company's revenue. The services the company provides include system integration by constructing systems tailored to individual customer needs, multiple Internet and computer network-based information and processing services, consulting that evaluates customers' management issues, system support for large-scale systems, and new IT-based business models. The company is based in Japan but has a global presence.
NTT Data Group (TSE:9613) Headlines
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