What is China Yurun Food Group Financial Strength?
China Yurun Food Group has the Financial Strength Rank of 1. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
China Yurun Food Group Ltd displays poor financial strength. Usually, this is caused by too much debt for the company.
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.
China Yurun Food Group did not have earnings to cover the interest expense.
China Yurun Food Group's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.41.
As of today, China Yurun Food Group's Altman Z-Score is -11.81.
Competitive Comparison of China Yurun Food Group's Financial Strength
For the Packaged Foods subindustry, China Yurun Food 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.
China Yurun Food Group's Financial Strength Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, China Yurun Food Group's Financial Strength distribution charts can be found below:
* The bar in red indicates where China Yurun Food Group's Financial Strength falls into.
China Yurun Food 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:
China Yurun Food Group's Interest Expense for the
months ended in Dec. 2023 was HK$-20 Mil. Its Operating Income for the
months ended in Dec. 2023 was HK$-32 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was HK$84 Mil.
China Yurun Food Group's Interest Coverage for the quarter that ended in Dec. 2023 is
| China Yurun Food Group did not have earnings to cover the interest expense. |
The higher the ratio, the stronger the company's financial strength is.
2. Debt to revenue ratio. The lower, the better.
China Yurun Food Group's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is
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.
China Yurun Food Group has a Z-score of -11.81, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of -11.81 is in distress zone. This implies bankruptcy 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.
China Yurun Food Group (HKSE:01068) Business Description
Traded in Other Exchanges
Address
10 Yurun Road, Jianye District, Nanjing, CHN, 210041
China Yurun Food Group Ltd is mainly engaged in the provision of a wide range of meat and processed meat including chilled and frozen meat, low-temperature meat products and high-temperature meat products, and others. The company operates through two business segments namely Chilled and frozen meat and Processed meat products. The Chilled and frozen meat is involved in the business of slaughtering, production, and sales of chilled and frozen meat whereas the Processed meat products segment manufactures and distributes processed meat products. The company markets its products under the brand name of Yurun, Furun, Wangrun, and Popular Meat Packing. China Yurun generates all the revenue from the sale of meat products in the People's Republic of China.
China Yurun Food Group (HKSE:01068) Headlines
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