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DUDigital Global (NSE:DUGLOBAL) Financial Strength : 7 (As of Sep. 2023)


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What is DUDigital Global Financial Strength?

DUDigital Global has the Financial Strength Rank of 7.

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.

DUDigital Global's Interest Coverage for the quarter that ended in Sep. 2023 was 0.88. DUDigital Global's debt to revenue ratio for the quarter that ended in Sep. 2023 was 0.28. As of today, DUDigital Global's Altman Z-Score is 37.03.


Competitive Comparison of DUDigital Global's Financial Strength

For the Personal Services subindustry, DUDigital Global'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.


DUDigital Global's Financial Strength Distribution in the Personal Services Industry

For the Personal Services industry and Consumer Cyclical sector, DUDigital Global's Financial Strength distribution charts can be found below:

* The bar in red indicates where DUDigital Global's Financial Strength falls into.



DUDigital Global 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:

DUDigital Global's Interest Expense for the months ended in Sep. 2023 was ₹-6.9 Mil. Its Operating Income for the months ended in Sep. 2023 was ₹6.0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was ₹43.8 Mil.

DUDigital Global'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*6.047/-6.902
=0.88

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

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

DUDigital Global'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
=(14.857 + 43.79) / 213.03
=0.28

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.

DUDigital Global has a Z-score of 37.03, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 37.03 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.


DUDigital Global  (NSE:DUGLOBAL) 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.

DUDigital Global has the Financial Strength Rank of 7.


DUDigital Global Financial Strength Related Terms

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


DUDigital Global (NSE:DUGLOBAL) Business Description

Traded in Other Exchanges
N/A
Address
C-4 SDA Community Centre Hauz Khas, New Delhi, IND, 110016
DUDigital Global Ltd is engaged in the business of providing visa processing services to embassies of different countries. The company plays administrative and non-judgmental tasks related to visa application, digitalization, document verification, and biometric data collection for customers.

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