GURUFOCUS.COM » STOCK LIST » Technology » Software » Syntel Inc (NAS:SYNT) » Definitions » Financial Strength

Syntel (Syntel) Financial Strength : 0 (As of Jun. 2018)


View and export this data going back to 1997. Start your Free Trial

What is Syntel Financial Strength?

Syntel 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.

Syntel's Interest Coverage for the quarter that ended in Jun. 2018 was 25.99. Syntel's debt to revenue ratio for the quarter that ended in Jun. 2018 was 0.27. As of today, Syntel's Altman Z-Score is 0.00.


Competitive Comparison of Syntel's Financial Strength

For the Information Technology Services subindustry, Syntel'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.


Syntel's Financial Strength Distribution in the Software Industry

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

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



Syntel 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:

Syntel's Interest Expense for the months ended in Jun. 2018 was $-2.2 Mil. Its Operating Income for the months ended in Jun. 2018 was $57.0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2018 was $239.5 Mil.

Syntel's Interest Coverage for the quarter that ended in Jun. 2018 is

Interest Coverage=-1*Operating Income (Q: Jun. 2018 )/Interest Expense (Q: Jun. 2018 )
=-1*56.995/-2.193
=25.99

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

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

Syntel's Debt to Revenue Ratio for the quarter that ended in Jun. 2018 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2018 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(27.974 + 239.548) / 998.796
=0.27

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.

Syntel 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.


Syntel  (NAS:SYNT) 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.

Syntel has the Financial Strength Rank of 0.


Syntel Financial Strength Related Terms

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


Syntel (Syntel) Business Description

Traded in Other Exchanges
N/A
Address
Syntel is a global provider of digital transformation, information technology, and knowledge process. The company earns approximately half of its revenue from customers in the banking and financial services industry. Syntel provides a broad range of technology solutions to its customers, including managed IT services, digital one, and KPO services. Managed services provides complete software applications development, maintenance, digital modernization, IT infrastructure, cloud, and migration services. Syntel's Digital One service line provides a range of consulting and implementation services built around enterprise architecture, data warehousing and business intelligence, enterprise application integration, web and mobile applications, and "Internet of Things".
Executives
Bharat Desai director, 10 percent owner, officer: Co-Chairman 2800, SUITE 300, BLOOMFIELD MI 48304
Neerja Sethi director, 10 percent owner 2800, SUITE 300, BLOOMFIELD MI 48304
Prashant Ranade director, officer: Co-Chairman 507 PLYMOUTH AVENUE, NE, GRAND RAPIDS MI 49505
Mrkonic George R Jr director C/O BORDERS GROUP INC, 100 PHOENIX DRIVE, ANN ARBOR MI 48108

Syntel (Syntel) Headlines

From GuruFocus

Syntel enters definitive agreement to be acquired by Atos S.E.

By Marketwired Marketwired 07-22-2018

Syntel Inc. (SYNT) CFO & CISO Arvind Godbole sells 2,175 Shares

By GuruFocus Research GuruFocus Editor 12-09-2010

Gurus Find Hot Information Technology Stocks

By James Li James Li 06-10-2016

Interim CEO Invests in IT Company

By Jennifer Chiou Jennifer Chiou 12-07-2016

Syntel Named a Partner of the Year by Pivotal

By Marketwired Marketwired 09-25-2018

RM LAW Announces Investigation of Syntel, Inc.

By PRNewswire PRNewswire 07-26-2018

Syntel Inc. (SYNT) Chairman, 10% Owner Bharat Desai sells 2,610,000 Shares

By GuruFocus Research GuruFocus Editor 11-22-2010