What is Tsubakimoto Chain Co Financial Strength?
Tsubakimoto Chain Co has the Financial Strength Rank of 7.
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.
Tsubakimoto Chain Co's Interest Coverage for the quarter that ended in Dec. 2023 was 100.47.
Tsubakimoto Chain Co's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.12.
As of today, Tsubakimoto Chain Co's Altman Z-Score is 2.87.
Competitive Comparison of Tsubakimoto Chain Co's Financial Strength
For the Specialty Industrial Machinery subindustry, Tsubakimoto Chain 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.
Tsubakimoto Chain Co's Financial Strength Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Tsubakimoto Chain Co's Financial Strength distribution charts can be found below:
* The bar in red indicates where Tsubakimoto Chain Co's Financial Strength falls into.
Tsubakimoto Chain 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:
Tsubakimoto Chain Co's Interest Expense for the
months ended in Dec. 2023 was 円-57 Mil. Its Operating Income for the
months ended in Dec. 2023 was 円5,727 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was 円18,737 Mil.
Tsubakimoto Chain Co's Interest Coverage for the quarter that ended in Dec. 2023 is
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Tsubakimoto Chain Co has enough cash to cover all of its debt. Its financial situation is stable.
2. Debt to revenue ratio. The lower, the better.
Tsubakimoto Chain Co'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.
Tsubakimoto Chain Co has a Z-score of 2.87, indicating it is in Grey Zones. This implies that Tsubakimoto Chain Co 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 2.87 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.
Tsubakimoto Chain Co (TSE:6371) Business Description
Traded in Other Exchanges
Address
Nakanoshima Mitsui Building, 6F, 3-3-3, Nakanoshima, Kita-ku, Osaka, JPN, 530-0005
Tsubakimoto Chain Co. is a Japan-based company that is engaged in manufacturing and sales of various variable speed drives, handling equipment and other related products and services. The company operates through four divisions. The Chain operation supplies chain products, including drive chains and conveyor chains. The Automotive Parts operation provides automotive timing drive systems, timing belts, long belts and others. The Power Transmission Unites and Component operation provides reducers, variable speed drives, motion control units and others. The Materials Handling Systems operation supplies sorting systems, conveyance systems, storage and picking systems and others. The company generates most of its revenue from Japan, America and Europe.
Tsubakimoto Chain Co (TSE:6371) Headlines
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