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Mood Media (LSE:MM.) Financial Strength : 0 (As of Mar. 2017)


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What is Mood Media Financial Strength?

Mood Media has the Financial Strength Rank of 0.

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.

Mood Media's Interest Coverage for the quarter that ended in Mar. 2017 was 0.39. Mood Media's debt to revenue ratio for the quarter that ended in Mar. 2017 was 1.40. As of today, Mood Media's Altman Z-Score is -0.52.


Competitive Comparison of Mood Media's Financial Strength

For the Advertising Agencies subindustry, Mood Media'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.


Mood Media's Financial Strength Distribution in the Media - Diversified Industry

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

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



Mood Media 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:

Mood Media's Interest Expense for the months ended in Mar. 2017 was £-11.1 Mil. Its Operating Income for the months ended in Mar. 2017 was £4.3 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2017 was £495.0 Mil.

Mood Media's Interest Coverage for the quarter that ended in Mar. 2017 is

Interest Coverage=-1*Operating Income (Q: Mar. 2017 )/Interest Expense (Q: Mar. 2017 )
=-1*4.293/-11.109
=0.39

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

Warning Sign:

Ben Graham prefers companies interest coverage is at least 5. Mood Media Corps earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

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

Mood Media's Debt to Revenue Ratio for the quarter that ended in Mar. 2017 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2017 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(6.764 + 495.039) / 357.188
=1.40

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.

Mood Media has a Z-score of -0.52, indicating it is in Distress Zones. This implies bankrupcy 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.


Mood Media  (LSE:MM.) 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.

Mood Media has the Financial Strength Rank of 0.


Mood Media Financial Strength Related Terms

Thank you for viewing the detailed overview of Mood Media's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Mood Media (LSE:MM.) Business Description

Traded in Other Exchanges
N/A
Address
Mood Media Corp was continued under the Canada Business Corporations Act on June 17, 2008 under the name Fluid Music Canada, Inc. On June 28, 2010, the Company changed its name to Mood Media Corporation. The Company provides in-store audio, visual, mobile, social and scent marketing solutions to businesses including specialist retailers, department stores, supermarkets, financial institutions and fitness clubs, as well as hotels, car dealerships and restaurants. Proprietary technology and software are used to deploy music from a compiled music library to client sites. This library comes from a diverse network of producers including major labels and independent and emerging artists. The Company reports its continuing operations in three reportable segments, In-store media - International, In-store media - North America, and BIS based on the significant business activity of the Company and its subsidiaries.

Mood Media (LSE:MM.) Headlines

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