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NEX Group (NEX Group) Financial Strength : 0 (As of Mar. 2018)


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What is NEX Group Financial Strength?

NEX Group 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.

NEX Group's Interest Coverage for the quarter that ended in Mar. 2018 was 11.11. NEX Group's debt to revenue ratio for the quarter that ended in Mar. 2018 was 0.84. As of today, NEX Group's Altman Z-Score is 0.00.


Competitive Comparison of NEX Group's Financial Strength

For the Capital Markets subindustry, NEX 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.


NEX Group's Financial Strength Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, NEX Group's Financial Strength distribution charts can be found below:

* The bar in red indicates where NEX Group's Financial Strength falls into.



NEX 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:

NEX Group's Interest Expense for the months ended in Mar. 2018 was $-12.6 Mil. Its Operating Income for the months ended in Mar. 2018 was $139.7 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2018 was $18.2 Mil.

NEX Group's Interest Coverage for the quarter that ended in Mar. 2018 is

Interest Coverage=-1*Operating Income (Q: Mar. 2018 )/Interest Expense (Q: Mar. 2018 )
=-1*139.665/-12.57
=11.11

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

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

NEX Group's Debt to Revenue Ratio for the quarter that ended in Mar. 2018 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2018 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(695.531 + 18.156) / 849.162
=0.84

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.

NEX Group has a Z-score of 0.00, 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.


NEX Group  (GREY:NXGRF) 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.

NEX Group has the Financial Strength Rank of 0.


NEX Group Financial Strength Related Terms

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NEX Group (NEX Group) Business Description

Traded in Other Exchanges
N/A
Address
NEX Group PLC provides electronic execution, risk mitigation, messaging, broking and information services for wholesale market participants. The Company's reportable segments include NEX Markets and NEX Optimisation. The company acts as an intermediary for FX and fixed income products through the Group's electronic platforms. It is also involved in a non-advisory capacity as principals in the matched purchase and sale of financial instruments between clients and provides technology development services.

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