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Kwung's Aroma Holdings (HKSE:01925) Financial Strength : 7 (As of Jun. 2024)


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What is Kwung's Aroma Holdings Financial Strength?

Kwung's Aroma Holdings has the Financial Strength Rank of 7.

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.

Kwung's Aroma Holdings's Interest Coverage for the quarter that ended in Jun. 2024 was 38.81. Kwung's Aroma Holdings's debt to revenue ratio for the quarter that ended in Jun. 2024 was 0.27. As of today, Kwung's Aroma Holdings's Altman Z-Score is 3.20.


Competitive Comparison of Kwung's Aroma Holdings's Financial Strength

For the Household & Personal Products subindustry, Kwung's Aroma Holdings'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.


Kwung's Aroma Holdings's Financial Strength Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Kwung's Aroma Holdings's Financial Strength distribution charts can be found below:

* The bar in red indicates where Kwung's Aroma Holdings's Financial Strength falls into.


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Kwung's Aroma Holdings 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:

Kwung's Aroma Holdings's Interest Expense for the months ended in Jun. 2024 was HK$-1 Mil. Its Operating Income for the months ended in Jun. 2024 was HK$22 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2024 was HK$3 Mil.

Kwung's Aroma Holdings'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*21.852/-0.563
=38.81

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

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

Kwung's Aroma Holdings'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
=(187.963 + 3.165) / 719.572
=0.27

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.

Kwung's Aroma Holdings has a Z-score of 3.20, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.2 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.


Kwung's Aroma Holdings  (HKSE:01925) 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.

Kwung's Aroma Holdings has the Financial Strength Rank of 7.


Kwung's Aroma Holdings Financial Strength Related Terms

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Kwung's Aroma Holdings Business Description

Traded in Other Exchanges
N/A
Address
827 Qixiang Road, Zhejiang Province, Haishu District, Ningbo, CHN
Kwung's Aroma Holdings Ltd is engaged in design and manufacture of home decoration products and home fragrance products, comprising core products such as home fragrance candles and home fragrance diffusers, which are considered to be widely used in people's daily life.
Executives
Dma Limited 2101 Beneficial owner
Ru Liming 2201 Interest of corporation controlled by you
Jin Jianxin 2307 Founder of a discretionary trust who can infl
Golden Element Investment Limited 2101 Beneficial owner
Equiom Fiduciary Services (hong Kong) Limited 2301 Trustee
Golden Existence Investment Limited 2201 Interest of corporation controlled by you
Chen Jiangyan 2202 Interest of your spouse
Jin Jianxin 2307 Founder of a discretionary trust who can infl
King Harmony Limited 2201 Interest of corporation controlled by you
Industrial Securities (hong Kong) Financial Holdings Limited 2201 Interest of corporation controlled by you

Kwung's Aroma Holdings Headlines

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