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China Maple Leaf Educational Systems (FRA:CML1) Financial Strength : 3 (As of Feb. 2024)


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What is China Maple Leaf Educational Systems Financial Strength?

China Maple Leaf Educational Systems has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

China Maple Leaf Educational Systems 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.

China Maple Leaf Educational Systems's Interest Coverage for the quarter that ended in Feb. 2024 was 1.23. China Maple Leaf Educational Systems's debt to revenue ratio for the quarter that ended in Feb. 2024 was 1.30. As of today, China Maple Leaf Educational Systems's Altman Z-Score is 0.20.


Competitive Comparison of China Maple Leaf Educational Systems's Financial Strength

For the Education & Training Services subindustry, China Maple Leaf Educational Systems'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.


China Maple Leaf Educational Systems's Financial Strength Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, China Maple Leaf Educational Systems's Financial Strength distribution charts can be found below:

* The bar in red indicates where China Maple Leaf Educational Systems's Financial Strength falls into.



China Maple Leaf Educational Systems 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:

China Maple Leaf Educational Systems's Interest Expense for the months ended in Feb. 2024 was €-18.9 Mil. Its Operating Income for the months ended in Feb. 2024 was €23.3 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Feb. 2024 was €8.9 Mil.

China Maple Leaf Educational Systems's Interest Coverage for the quarter that ended in Feb. 2024 is

Interest Coverage=-1*Operating Income (Q: Feb. 2024 )/Interest Expense (Q: Feb. 2024 )
=-1*23.258/-18.927
=1.23

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. China Maple Leaf Educational Systems Ltd interest coverage is 1.05, which is low.

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

China Maple Leaf Educational Systems's Debt to Revenue Ratio for the quarter that ended in Feb. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Feb. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(210.798 + 8.936) / 169.584
=1.30

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.

China Maple Leaf Educational Systems has a Z-score of 0.20, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.2 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.


China Maple Leaf Educational Systems  (FRA:CML1) 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.

China Maple Leaf Educational Systems has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


China Maple Leaf Educational Systems Financial Strength Related Terms

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China Maple Leaf Educational Systems (FRA:CML1) Business Description

Traded in Other Exchanges
Address
No. 13, Baolong First Road, Baolong Street, Longgang District, Guangdong Province, Shenzhen, CHN, 518116
China Maple Leaf Educational Systems Ltd provides one of China's private international school systems and has been a Chinese international school operator since 1995. Its Maple Leaf Systems and its secondary, middle, elementary, and foreign national schools have been accredited by Cognia, since 2017. The core component of business is a bilingual, dual-curriculum and dual-diploma high school education. It enables graduates of People's Republic of China, or PRC, and British Columbia, or BC, certified schools to receive both a fully accredited BC high school diploma and a PRC high school diploma. It operates all schools under the "Maple Leaf" brand. The company's reportable segment includes, PRC segment, and the Overseas segment which generates majority of the revenue of the company.

China Maple Leaf Educational Systems (FRA:CML1) Headlines

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