What is Tang Palace (China) Holdings Financial Strength?
Tang Palace (China) Holdings 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.
Tang Palace (China) Holdings's Interest Coverage for the quarter that ended in Dec. 2023 was 3.87.
Tang Palace (China) Holdings's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.21.
As of today, Tang Palace (China) Holdings's Altman Z-Score is 2.14.
Competitive Comparison of Tang Palace (China) Holdings's Financial Strength
For the Restaurants subindustry, Tang Palace (China) Holdings'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.
Tang Palace (China) Holdings's Financial Strength Distribution in the Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Tang Palace (China) Holdings's Financial Strength distribution charts can be found below:
* The bar in red indicates where Tang Palace (China) Holdings's Financial Strength falls into.
Tang Palace (China) Holdings 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:
Tang Palace (China) Holdings's Interest Expense for the
months ended in Dec. 2023 was HK$-6 Mil. Its Operating Income for the
months ended in Dec. 2023 was HK$22 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was HK$188 Mil.
Tang Palace (China) Holdings's Interest Coverage for the quarter that ended in Dec. 2023 is
The higher the ratio, the stronger the company's financial strength is.
2. Debt to revenue ratio. The lower, the better.
Tang Palace (China) Holdings'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.
Tang Palace (China) Holdings has a Z-score of 2.14, indicating it is in Grey Zones. This implies that Tang Palace (China) Holdings 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 2.14 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.
Tang Palace (China) Holdings (HKSE:01181) Business Description
Traded in Other Exchanges
Address
No. 1 Science Museum Road, Unit 3, 10th Floor, Greenfield Tower, Concordia Plaza, Kowloon, HKG
Tang Palace (China) Holdings Ltd is an investment holding company engaged in restaurant operations and food production. The primary production of the group is located in the People's Republic of China. It offers new dishes, seasonal foods, festive celebrations, basic sauce, food ingredient, and casual dining of different regional cuisines. The company has four operating segments - the Southern China region, the Eastern China region, the Northern China region, and the Western China region. Majority of its revenue is generated from the Eastern China segment. The company operates restaurants under the Soup Delice, Tang Palace, Tang's Cuisine, Tang Palace Seafood Restaurant, Canton Tea Room, Social Place, Pepper Lunch, and PappaRich, brands.
Tang Palace (China) Holdings (HKSE:01181) Headlines
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