CommScope Holding Company, Inc.
Supplier Financial Health Report
Overview
June 2024
USA
Incorporated Country
30,000
Number of Employees
0.97
Altman Z-Score
--
Count of Investments
Five-Year Financial Trend Analysis for CommScope Holding Company, Inc.
--
Credit Trend
137.65%
Total Balance Sheet Growth Rate
138.38%
Total Debt Growth Rate
Despite the revenue and balance sheet growth, the company's cash position has decreased from $729.32M in 2014 to $398.1M in 2022, a 45.41% change. Additionally, total debt and liabilities have also increased, with total debt rising from $3.99B in 2018 to $9.5B in 2022, a 138.38% change, and liabilities increasing from $4.87B in 2018 to $12.13B in 2022, a 148.91% change. Stockholders equity has also decreased from $1.76B in 2018 to -$1.55B in 2022, a 188.00% change.
Net income and EBITDA have both shown significant decreases, with net income dropping from $236.77M in 2014 to -$1.29B in 2022, a 643.52% change, and EBITDA decreasing from $943.63M in 2016 to -$17.8M in 2022, a 101.89% change. Net operating cash flow has also decreased from $289.42M in 2014 to $190M in 2022, a 34.35% change. Capital expenditures have increased from $69.4M in 2018 to $101.2M in 2022, a 45.82% change, but free cash flow has decreased from $424.7M in 2018 to $88.8M in 2022, a 79.09% change.
CommScope's revenue growth is a positive trend, but the decrease in cash, increase in debt and liabilities, and negative net income and free cash flow are concerning indicators of financial instability. The company's financial health should be closely monitored as it continues to grow.
The company's revenue is derived from various countries, with Canada, China, India, Japan, Germany, Italy, South Korea, Australia, and the Russian Federation each contributing over 1% of the company's revenue. The United Kingdom contributes 0.90%.
Unfortunately, there is insufficient data to assess CommScope's credit rating, credit score, credit trend, number of funding rounds, total funding amount, number of investors, number of investments, and number of exits.
Financial Health Risk Assessment for CommScope Holding Company, Inc.
MEDIUM
Profitability Risk
LOW
Operational Efficiency Risk
MEDIUM
Financial Health Risk
Net income and EBITDA have both shown significant decreases, with net income dropping from $236.77M in 2014 to -$1.29B in 2022, and EBITDA decreasing from $943.63M in 2016 to -$17.8M in 2022. Net operating cash flow has also decreased from $289.42M in 2014 to $190M in 2022. Capital expenditures have increased from $69.4M in 2018 to $101.2M in 2022, but free cash flow has decreased from $424.7M in 2018 to $88.8M in 2022.
The revenue growth is a positive trend, but the decrease in cash, increase in debt and liabilities, and negative net income and free cash flow are concerning indicators of financial instability. CommScope's financial health should be closely monitored as it continues to grow. The company's revenue is derived from various countries, with Canada, China, India, Japan, Germany, Italy, South Korea, Australia, and the Russian Federation each contributing over 1% of the company's revenue. The United Kingdom contributes 0.90%.
Based on the financial data provided, CommScope's financial health shows some positive trends, such as a reasonable ability to pay off short-term obligations and a decent return on equity. However, there are also negative trends, such as a high debt-to-equity ratio, negative net profit margin, and a moderate probability of financial challenges according to the Altman Z-Score. The current ratio of 1.77 indicates that the company has a moderate ability to pay off its short-term obligations, but the negative net profit margin of -0.14 indicates that the company is not generating enough revenue to cover its costs. The debt ratio of 0.81 indicates that debt financing makes up a significant portion of the company's capital structure, and the negative debt-to-equity ratio of -7.85 implies that the company has more debt than equity. The Altman Z-Score of 0.97 indicates that CommScope is in the grey area, suggesting a moderate probability of financial challenges.
Therefore, it is crucial for investors and stakeholders to closely monitor CommScope's financial performance and consider the potential impact of any changes in profitability or liquidity on the company's financial health. Further investigation may be necessary to assess the company's credit rating, credit score, credit trend, number of funding rounds, total funding amount, number of investors, number of investments, and number of exits.
List of UEIs for CommScope Holding Company, Inc.
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