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YASKAWA Electric (FRA:YEC) Financial Strength : 5 (As of Feb. 2025)


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What is YASKAWA Electric Financial Strength?

YASKAWA Electric has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and 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.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

YASKAWA Electric's Interest Coverage for the quarter that ended in Feb. 2025 was 10.56. YASKAWA Electric's debt to revenue ratio for the quarter that ended in Feb. 2025 was 0.19. As of today, YASKAWA Electric's Altman Z-Score is 3.77.


Competitive Comparison of YASKAWA Electric's Financial Strength

For the Electrical Equipment & Parts subindustry, YASKAWA Electric'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.


YASKAWA Electric's Financial Strength Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, YASKAWA Electric's Financial Strength distribution charts can be found below:

* The bar in red indicates where YASKAWA Electric's Financial Strength falls into.


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YASKAWA Electric 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:

YASKAWA Electric's Interest Expense for the months ended in Feb. 2025 was €-10 Mil. Its Operating Income for the months ended in Feb. 2025 was €100 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Feb. 2025 was €517 Mil.

YASKAWA Electric's Interest Coverage for the quarter that ended in Feb. 2025 is

Interest Coverage=-1*Operating Income (Q: Feb. 2025 )/Interest Expense (Q: Feb. 2025 )
=-1*100.357/-9.5
=10.56

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

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

YASKAWA Electric's Debt to Revenue Ratio for the quarter that ended in Feb. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Feb. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(176.658 + 517.04) / 3648
=0.19

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.

YASKAWA Electric has a Z-score of 3.77, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.77 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.


YASKAWA Electric  (FRA:YEC) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

YASKAWA Electric has the Financial Strength Rank of 5.


YASKAWA Electric Financial Strength Related Terms

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YASKAWA Electric Business Description

Traded in Other Exchanges
Address
2-1, Kurosaki-shiroishi, Yahatanishi-ku, Kitakyushu, JPN, 806-0004
Yaskawa Electric manufactures and sells servo motors, AC drives (inverters), industrial robots, and other motor-based products. It operates mainly in Asia, the Americas, and Europe, the Middle East, and Africa. According to the company, it has the leading global share with AC servo motors/controllers—its cumulative AC servo motor shipments reached 20 million units in 2020—and it is also considered as one of the big four industrial robotics companies. The company was founded in 1915, and its head office is in Kitakyushu, Fukuoka Prefecture, Japan.

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