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Aluminum of China (Aluminum of China) Financial Strength : 5 (As of Mar. 2024)


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What is Aluminum of China Financial Strength?

Aluminum of China has the Financial Strength Rank of 5.

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.

Aluminum of China's Interest Coverage for the quarter that ended in Mar. 2024 was 7.03. Aluminum of China's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.36. As of today, Aluminum of China's Altman Z-Score is 2.07.


Competitive Comparison of Aluminum of China's Financial Strength

For the Aluminum subindustry, Aluminum of China'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.


Aluminum of China's Financial Strength Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Aluminum of China's Financial Strength distribution charts can be found below:

* The bar in red indicates where Aluminum of China's Financial Strength falls into.



Aluminum of China 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:

Aluminum of China's Interest Expense for the months ended in Mar. 2024 was $-106 Mil. Its Operating Income for the months ended in Mar. 2024 was $747 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $7,412 Mil.

Aluminum of China's Interest Coverage for the quarter that ended in Mar. 2024 is

Interest Coverage=-1*Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*747.17/-106.254
=7.03

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

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

Aluminum of China's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(2366.124 + 7411.539) / 27191.932
=0.36

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.

Aluminum of China has a Z-score of 2.07, indicating it is in Grey Zones. This implies that Aluminum of China is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.07 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* 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.


Aluminum of China  (OTCPK:ACHHY) 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.

Aluminum of China has the Financial Strength Rank of 5.


Aluminum of China Financial Strength Related Terms

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Aluminum of China (Aluminum of China) Business Description

Address
No. 62 North Xizhimen Street, Haidian District, Beijing, CHN, 100082
Aluminum Corp of China Ltd is an aluminum producer. The Alumina segment consists of the mining and purchase of bauxite and other raw materials. The Primary aluminum segment consists of the procurement of alumina, supplemental materials, and electric power. Its Energy segment comprises the production and operation of energy products mainly coal mining. The Trading segment includes the trading of alumina primary aluminum, aluminum fabrication products, other non-ferrous metal products and Corporate and other operating segments. Geographically, it operates in Mainland China, as well as other countries. It generates a major part of its revenue from the Trading segment.

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