Bojun Education Co 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:
Bojun Education Co 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 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.
Bojun Education Co's Interest Coverage for the quarter that ended in Aug. 2024 was 0.50.
Bojun Education Co's debt to revenue ratio for the quarter that ended in Aug. 2024 was 3.71.
As of today, Bojun Education Co's Altman Z-Score is -0.27.
Competitive Comparison of Bojun Education Co's Financial Strength
For the Education & Training Services subindustry, Bojun Education 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.
Bojun Education Co's Financial Strength Distribution in the Education Industry
For the Education industry and Consumer Defensive sector, Bojun Education Co's Financial Strength distribution charts can be found below:
* The bar in red indicates where Bojun Education Co's Financial Strength falls into.
Bojun Education 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.
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:
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. Bojun Education Co Ltds earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.
2. Debt to revenue ratio. The lower, the better.
Bojun Education Co's Debt to Revenue Ratio for the quarter that ended in Aug. 2024 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.
Bojun Education Co has a Z-score of -0.27, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of -0.27 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.
Bojun Education Co (HKSE:01758) 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.
Bojun Education Co 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.
Bojun Education Co Financial Strength Related Terms
Thank you for viewing the detailed overview of Bojun Education Co's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
Bojun Education Co Ltd is engaged in providing private education services. The company operates middle schools, high schools, and kindergartens. Its operating segment includes (i) the provision of profit-making kindergarten and the provision of high school education services; (ii) the provision of vocational education services and (iii) the provision of education consultancy and management services. The company generates maximum revenue from the education consultancy and management services segment. Geographically, it derives the majority of its revenue from the People's Republic of China.
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