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Sino-German United AG (FRA:SGU) Financial Strength : 5 (As of Jun. 2024)


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What is Sino-German United AG Financial Strength?

Sino-German United AG has the Financial Strength Rank of 5.

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.

Sino-German United AG's Interest Coverage for the quarter that ended in Jun. 2024 was 9.78. Sino-German United AG's debt to revenue ratio for the quarter that ended in Jun. 2024 was 0.32. As of today, Sino-German United AG's Altman Z-Score is 1.56.


Competitive Comparison of Sino-German United AG's Financial Strength

For the Capital Markets subindustry, Sino-German United AG'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.


Sino-German United AG's Financial Strength Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Sino-German United AG's Financial Strength distribution charts can be found below:

* The bar in red indicates where Sino-German United AG's Financial Strength falls into.



Sino-German United AG 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:

Sino-German United AG's Interest Expense for the months ended in Jun. 2024 was €-0.01 Mil. Its Operating Income for the months ended in Jun. 2024 was €0.09 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2024 was €0.93 Mil.

Sino-German United AG's Interest Coverage for the quarter that ended in Jun. 2024 is

Interest Coverage=-1*Operating Income (Q: Jun. 2024 )/Interest Expense (Q: Jun. 2024 )
=-1*0.088/-0.009
=9.78

The higher the ratio, the stronger the company's financial strength is.

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

Sino-German United AG's Debt to Revenue Ratio for the quarter that ended in Jun. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 0.93) / 2.948
=0.32

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.

Sino-German United AG has a Z-score of 1.56, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.56 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.


Sino-German United AG  (FRA:SGU) 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.

Sino-German United AG has the Financial Strength Rank of 5.


Sino-German United AG Financial Strength Related Terms

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Sino-German United AG Business Description

Traded in Other Exchanges
Address
Maximilianstrasse 54, Munich, BY, DEU, 80538
Sino-German United AG is a trading company that focuses on the Chinese and German markets. The trading division of Sino-German United AG is currently focused on the trade in German consumer goods of daily use, Essentially the export of German premium beer to China. In addition, advising German and Chinese companies is part of the Corporate expertise to establish cooperation in economic and cultural promotion areas between China and Germany.

Sino-German United AG Headlines