CHEB (Chenghe Acquisition II Co) Financial Strength : 9 (As of Sep. 2024)

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What is Chenghe Acquisition II Co Financial Strength?

Chenghe Acquisition II Co has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Chenghe Acquisition II Co shows strong financial strength.

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.

Chenghe Acquisition II Co has no long-term debt ⁽¹⁾. As of today, Chenghe Acquisition II Co's Altman Z-Score is 0.00.

(1) Note: An indication of "no long-term debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

Competitive Comparison of Chenghe Acquisition II Co's Financial Strength

For the Shell Companies subindustry, Chenghe Acquisition II 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.

Chenghe Acquisition II Co's Financial Strength Distribution in the Diversified Financial Services Industry

For the Diversified Financial Services industry and Financial Services sector, Chenghe Acquisition II Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Chenghe Acquisition II Co's Financial Strength falls into.

Chenghe Acquisition II 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:

Chenghe Acquisition II Co's Interest Expense for the months ended in Sep. 2024 was $0.00 Mil. Its Operating Income for the months ended in Sep. 2024 was $-2.49 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was $0.00 Mil.

Chenghe Acquisition II Co's Interest Coverage for the quarter that ended in Sep. 2024 is

Chenghe Acquisition II Co had no long-term debt ⁽¹⁾.

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. Chenghe Acquisition II Co has enough cash to cover all of its debt. Its financial situation is stable.

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

Chenghe Acquisition II Co's Debt to Revenue Ratio for the quarter that ended in Sep. 2024 is

Debt to Revenue Ratio	=	Total Debt (Q: Sep. 2024 )			/	Revenue
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Revenue
	=	(0	+	0)	/	0
	=	N/A

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.

Chenghe Acquisition II Co has a Z-score of 0.00, indicating it is in Distress Zones. This implies bankrupcy 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.

Chenghe Acquisition II Co (AMEX:CHEB) 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.

Chenghe Acquisition II Co has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.

Chenghe Acquisition II Co Financial Strength Related Terms

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