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Oxford Metrics (LSE:OMG) Financial Strength : 10 (As of Sep. 2023)


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What is Oxford Metrics Financial Strength?

Oxford Metrics has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Oxford Metrics PLC 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.

Oxford Metrics's Interest Coverage for the quarter that ended in Sep. 2023 was 12.78. Oxford Metrics's debt to revenue ratio for the quarter that ended in Sep. 2023 was 0.10. As of today, Oxford Metrics's Altman Z-Score is 7.16.


Competitive Comparison of Oxford Metrics's Financial Strength

For the Software - Application subindustry, Oxford Metrics'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.


Oxford Metrics's Financial Strength Distribution in the Software Industry

For the Software industry and Technology sector, Oxford Metrics's Financial Strength distribution charts can be found below:

* The bar in red indicates where Oxford Metrics's Financial Strength falls into.



Oxford Metrics 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:

Oxford Metrics's Interest Expense for the months ended in Sep. 2023 was £-0.12 Mil. Its Operating Income for the months ended in Sep. 2023 was £1.47 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was £2.50 Mil.

Oxford Metrics'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*1.47/-0.115
=12.78

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

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

Oxford Metrics'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
=(1.898 + 2.498) / 45.91
=0.10

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.

Oxford Metrics has a Z-score of 7.16, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 7.16 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.


Oxford Metrics  (LSE:OMG) 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.

Oxford Metrics has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.


Oxford Metrics Financial Strength Related Terms

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


Oxford Metrics (LSE:OMG) Business Description

Traded in Other Exchanges
Address
6 Oxford Pioneer Park, Yarnton, Oxfordshire, GBR, OX5 1QU
Oxford Metrics PLC develops and markets analytics software for motion measurement and infrastructure asset management. The company comprises one business segment: The Vicon Group is engaged in the development, production, and sale of computer software and equipment for the engineering, entertainment, and life science markets. The firm operates in United States and United Kingdom.

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