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America MovilB de CV (America MovilB de CV) Financial Strength : 4 (As of Mar. 2024)


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What is America MovilB de CV Financial Strength?

America MovilB de CV has the Financial Strength Rank of 4.

Warning Sign:

America Movil SAB de CV 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.

America MovilB de CV's Interest Coverage for the quarter that ended in Mar. 2024 was 3.73. America MovilB de CV's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.83. As of today, America MovilB de CV's Altman Z-Score is 1.21.


Competitive Comparison of America MovilB de CV's Financial Strength

For the Telecom Services subindustry, America MovilB de CV'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.


America MovilB de CV's Financial Strength Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, America MovilB de CV's Financial Strength distribution charts can be found below:

* The bar in red indicates where America MovilB de CV's Financial Strength falls into.



America MovilB de CV 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:

America MovilB de CV's Interest Expense for the months ended in Mar. 2024 was $-680 Mil. Its Operating Income for the months ended in Mar. 2024 was $2,533 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $32,856 Mil.

America MovilB de CV'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*2532.861/-679.551
=3.73

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. America Movil SAB de CV interest coverage is 2.72, which is low.

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

America MovilB de CV'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
=(7726.803 + 32855.726) / 48998.284
=0.83

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.

America MovilB de CV has a Z-score of 1.21, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.21 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.


America MovilB de CV  (NYSE:AMX) 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.

America MovilB de CV has the Financial Strength Rank of 4.


America MovilB de CV Financial Strength Related Terms

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America MovilB de CV (America MovilB de CV) Business Description

Address
Lago Zurich 245, Plaza Carso / Edificio Telcel, Colonia Ampliacion Granada, Delegacion Miguel Hidalgo, Piso 16, Mexico City, DF, MEX, 11529
America Movil is the largest telecom carrier in Latin America, serving about 300 million wireless customers across the region. It also provides fixed-line phone, internet access, and television services in most of the countries it serves. Mexico is the firm's largest market, providing about 35% of service revenue. Movil dominates the Mexican wireless market with more than 60% customer share and also serves about half of fixed-line internet access customers in the country. Brazil, its second most important market, provides about 20% of service revenue. Movil sold its low-margin wireless resale business in the U.S. to Verizon in 2021 and now owns a 1.4% stake in the U.S. telecom giant. The firm also holds a 57% stake in Telekom Austria and a 16% stake in Dutch carrier KPN.

America MovilB de CV (America MovilB de CV) Headlines