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Cosmo Lady (China) Holdings Co (HKSE:02298) Financial Strength : 6 (As of Dec. 2023)


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What is Cosmo Lady (China) Holdings Co Financial Strength?

Cosmo Lady (China) Holdings Co 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.

Cosmo Lady (China) Holdings Co's Interest Coverage for the quarter that ended in Dec. 2023 was 0.94. Cosmo Lady (China) Holdings Co's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.26. As of today, Cosmo Lady (China) Holdings Co's Altman Z-Score is 1.05.


Competitive Comparison of Cosmo Lady (China) Holdings Co's Financial Strength

For the Apparel Manufacturing subindustry, Cosmo Lady (China) Holdings Co'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.


Cosmo Lady (China) Holdings Co's Financial Strength Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Cosmo Lady (China) Holdings Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Cosmo Lady (China) Holdings Co's Financial Strength falls into.



Cosmo Lady (China) Holdings Co 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:

Cosmo Lady (China) Holdings Co's Interest Expense for the months ended in Dec. 2023 was HK$-19 Mil. Its Operating Income for the months ended in Dec. 2023 was HK$18 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was HK$444 Mil.

Cosmo Lady (China) Holdings Co'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*17.581/-18.782
=0.94

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

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

Cosmo Lady (China) Holdings Co'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
=(337.097 + 443.514) / 3039.502
=0.26

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.

Cosmo Lady (China) Holdings Co has a Z-score of 1.05, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.05 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.


Cosmo Lady (China) Holdings Co  (HKSE:02298) 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.

Cosmo Lady (China) Holdings Co has the Financial Strength Rank of 6.


Cosmo Lady (China) Holdings Co Financial Strength Related Terms

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Cosmo Lady (China) Holdings Co (HKSE:02298) Business Description

Traded in Other Exchanges
N/A
Address
Fenggang Tianan Digital City, Building N1, Fenggang Town, Guangdong, Dongguan, CHN
Cosmo Lady (China) Holdings Co Ltd primarily manufactures intimate wear apparel such as bras, underpants, sleepwear, loungewear, and thermal clothes. The company targets both the mass market and the high-end market with its brands that include Cosmo, Secret of City Beauty, Freeday, Mayajia, Ordifen, Rubii, and Ilsee. More than half of the company's sales are to franchisees that operate company outlet stores. The remaining sales are direct to consumers through Cosmo's self-managed company outlets and e-commerce sales. Women's apparel accounts for the vast majority of the company's total sales, and all sales are generated in China.
Executives
Pandanus Partners L.p. 2201 Interest of corporation controlled by you
Pandanus Associates Inc. 2201 Interest of corporation controlled by you
Fil Limited 2201 Interest of corporation controlled by you
Fidelity China Special Situations Plc 2101 Beneficial owner
Zheng Yaonan 2202 Interest of your spouse
Wu Xiaoli 2101 Beneficial owner
Tmf (cayman) Ltd. 2301 Trustee
Cai Shaoru 2202 Interest of your spouse
Forever Flourish International Holdings Limited 2101 Beneficial owner
Zhang Shengfeng 2201 Interest of corporation controlled by you
Cai Jingqin 2202 Interest of your spouse
Lin Zonghong 2101 Beneficial owner
Xin Feng Asset Holdings Limited 2201 Interest of corporation controlled by you
Forever Shine Holdings Limited 2101 Beneficial owner
Hong Ye Asset Holdings Limited 2201 Interest of corporation controlled by you

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