New Oriental Education & Technology Group has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
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.
GuruFocus does not calculate New Oriental Education & Technology Group's interest coverage with the available data.
New Oriental Education & Technology Group's debt to revenue ratio for the quarter that ended in Nov. 2023 was 0.15.
As of today, New Oriental Education & Technology Group's Altman Z-Score is 3.92.
Competitive Comparison
For the Education & Training Services subindustry, New Oriental Education & Technology Group'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.
New Oriental Education & Technology Group Financial Strength Distribution
For the Education industry and Consumer Defensive sector, New Oriental Education & Technology Group's Financial Strength distribution charts can be found below:
* The bar in red indicates where New Oriental Education & Technology Group's Financial Strength falls into.
New Oriental Education & Technology Group 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.
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:
New Oriental Education & Technology Group's Interest Coverage for the quarter that ended in Nov. 2023 is
GuruFocus does not calculate New Oriental Education & Technology Group's interest coverage with the available data.
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. New Oriental Education & Technology Group Inc has enough cash to cover all of its debt. Its financial situation is stable.
2. Debt to revenue ratio. The lower, the better.
New Oriental Education & Technology Group's Debt to Revenue Ratio for the quarter that ended in Nov. 2023 is
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.
New Oriental Education & Technology Group has a Z-score of 3.92, indicating it is in Safe Zones. This implies the Z-Score is strong.
Good Sign:
Altman Z-score of 3.92 is strong.
* 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.
New Oriental Education & Technology Group (NYSE:EDU) 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.
New Oriental Education & Technology Group has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
New Oriental Education & Technology Group Financial Strength Related Terms
Thank you for viewing the detailed overview of New Oriental Education & Technology Group's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
New Oriental Education & Technology Group (New Oriental Education & Technology Group) Business Description
New Oriental is a leading private education provider in China. K-9 academic after-school tutoring used to account for 50%-60% of New Oriental's revenue before the regulatory crackdown in 2021. After terminating its K-9 academic after-school tutoring business, New Oriental has identified a few new initiatives such as nonacademic tutoring and intelligent learning systems and devices. The remaining businesses include high school academic after-school tutoring and overseas-related test preparation and consulting business. It also owns 55.7% of East Buy (HKG: 01797), a market leader in livestreaming e-commerce.
New Oriental Education & Technology Group (New Oriental Education & Technology Group) Headlines
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