What is Hongda Xingye Co Financial Strength?
Hongda Xingye Co has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Hongda Xingye Co 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.
Hongda Xingye Co did not have earnings to cover the interest expense.
Hongda Xingye Co's debt to revenue ratio for the quarter that ended in Sep. 2023 was 5.40.
As of today, Hongda Xingye Co's Altman Z-Score is 0.24.
Competitive Comparison of Hongda Xingye Co's Financial Strength
For the Specialty Chemicals subindustry, Hongda Xingye 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.
Hongda Xingye Co's Financial Strength Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Hongda Xingye Co's Financial Strength distribution charts can be found below:
* The bar in red indicates where Hongda Xingye Co's Financial Strength falls into.
Hongda Xingye 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:
Hongda Xingye Co's Interest Expense for the
months ended in Sep. 2023 was ¥-66 Mil. Its Operating Income for the
months ended in Sep. 2023 was ¥-279 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was ¥291 Mil.
Hongda Xingye Co's Interest Coverage for the quarter that ended in Sep. 2023 is
| Hongda Xingye Co 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.
Hongda Xingye Co's Debt to Revenue Ratio for the quarter that ended in Sep. 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.
Hongda Xingye Co has a Z-score of 0.24, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 0.24 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.
Hongda Xingye Co (SZSE:002002) Business Description
Traded in Other Exchanges
N/A
Address
No.1 Guangzhou Circle Road, Guangzhou Circle, 28th Floor, Guangzhou, CHN, 510385
Hongda Xingye Co Ltd is a Chinese chemical resource company. It is engaged in the manufacture and sale of chemical products. The business areas of the company are New materials, Environmental protection, and Electronic trading. It offers products like soil conditioner, desulfurizer; environmental modification engineering services such as soil remediation, desulfuration, and denitration; PVC new materials like PVC, modified PVC, PVC building formwork, PVC pharmaceutical packaging material, PVC ecological houses; rare earth new materials such as rare earth heat stabilizer and rare earth catalyst. In addition, the company also provide services of the business to business e-commerce, comprehensive logistics, technical support for large spot industrial raw materials.
Hongda Xingye Co (SZSE:002002) Headlines
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