What is Shinkong Synthetic Fiber Financial Strength?
Shinkong Synthetic Fiber 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:
Shinkong Synthetic Fiber Corp 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.
Shinkong Synthetic Fiber's Interest Coverage for the quarter that ended in Dec. 2023 was 1.83.
Shinkong Synthetic Fiber's debt to revenue ratio for the quarter that ended in Dec. 2023 was 1.36.
As of today, Shinkong Synthetic Fiber's Altman Z-Score is 0.45.
Competitive Comparison of Shinkong Synthetic Fiber's Financial Strength
For the Textile Manufacturing subindustry, Shinkong Synthetic Fiber'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.
Shinkong Synthetic Fiber's Financial Strength Distribution in the Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Shinkong Synthetic Fiber's Financial Strength distribution charts can be found below:
* The bar in red indicates where Shinkong Synthetic Fiber's Financial Strength falls into.
Shinkong Synthetic Fiber 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:
Shinkong Synthetic Fiber's Interest Expense for the
months ended in Dec. 2023 was NT$-479 Mil. Its Operating Income for the
months ended in Dec. 2023 was NT$875 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was NT$22,711 Mil.
Shinkong Synthetic Fiber's Interest Coverage for the quarter that ended in Dec. 2023 is
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Shinkong Synthetic Fiber Corp interest coverage is 1.76, which is low.
2. Debt to revenue ratio. The lower, the better.
Shinkong Synthetic Fiber'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.
Shinkong Synthetic Fiber has a Z-score of 0.45, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 0.45 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.
Shinkong Synthetic Fiber (TPE:1409) Business Description
Traded in Other Exchanges
N/A
Address
No. 136, Ren Ai Road, Section 3, Lotus Building, 5th Floor, Da An District, Taipei, TWN, 10657
Shinkong Synthetic Fiber Corp is a Taiwan-based company that is principally engaged in the production and distribution of chemical fiber products and plastic products. The company's chemical fiber products include polyester staple fibers, polyester filaments, industrial yarn, draw textured yarn, and others. The plastic products consist of polyester resin, bottle grade resin, PET bottle preforms, PET bottles, Engineering polymers, and PE sheets. The company generates the majority of its total revenue from chemical fiber products and plastic products. The company mainly conducts operations in Asia and Europe and generates the majority of its total revenue from the Asia market.
Shinkong Synthetic Fiber (TPE:1409) Headlines
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