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FUJI Soft (TSE:9749) Financial Strength : 6 (As of Dec. 2023)


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What is FUJI Soft Financial Strength?

FUJI Soft has the Financial Strength Rank of 6.

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.

FUJI Soft's Interest Coverage for the quarter that ended in Dec. 2023 was 432.50. FUJI Soft's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.20. As of today, FUJI Soft's Altman Z-Score is 3.81.


Competitive Comparison of FUJI Soft's Financial Strength

For the Information Technology Services subindustry, FUJI Soft'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.


FUJI Soft's Financial Strength Distribution in the Software Industry

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

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



FUJI Soft 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:

FUJI Soft's Interest Expense for the months ended in Dec. 2023 was 円-12 Mil. Its Operating Income for the months ended in Dec. 2023 was 円5,190 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was 円8,524 Mil.

FUJI Soft's Interest Coverage for the quarter that ended in Dec. 2023 is

Interest Coverage=-1*Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*5190/-12
=432.50

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

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

FUJI Soft's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(51504 + 8524) / 300748
=0.20

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.

FUJI Soft has a Z-score of 3.81, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.81 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.


FUJI Soft  (TSE:9749) 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.

FUJI Soft has the Financial Strength Rank of 6.


FUJI Soft Financial Strength Related Terms

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FUJI Soft (TSE:9749) Business Description

Traded in Other Exchanges
Address
1-1 Sakuragicho, Naka-Ku, Kanagawa, Yokohama-Shi, JPN, 231-8008
FUJI Soft Inc is a holding company that provides a variety of information technology, or IT, services through its subsidiaries. The company organizes itself into four segments based on subsidiary. The FUJI soft segment, which generates the majority of revenue, provides system construction, cloud integration, IT security, and broadband services. The cybernet systems segment provides a variety of IT services for manufacturing companies. The vinx segment sells software and provides data center services. The cyber com segment provides software development services.

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