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Shanghai Jiaoda Withub Information Industrial Co (HKSE:08205) Financial Strength : 6 (As of Dec. 2023)


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What is Shanghai Jiaoda Withub Information Industrial Co Financial Strength?

Shanghai Jiaoda Withub Information Industrial Co has the Financial Strength Rank of 6.

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.

Shanghai Jiaoda Withub Information Industrial Co has no long-term debt (1). Shanghai Jiaoda Withub Information Industrial Co's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.04. As of today, Shanghai Jiaoda Withub Information Industrial Co's Altman Z-Score is -1.73.

(1) Note: An indication of "no long-term debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.


Competitive Comparison of Shanghai Jiaoda Withub Information Industrial Co's Financial Strength

For the Software - Application subindustry, Shanghai Jiaoda Withub Information Industrial 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.


Shanghai Jiaoda Withub Information Industrial Co's Financial Strength Distribution in the Software Industry

For the Software industry and Technology sector, Shanghai Jiaoda Withub Information Industrial Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Shanghai Jiaoda Withub Information Industrial Co's Financial Strength falls into.



Shanghai Jiaoda Withub Information Industrial 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.

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:

Shanghai Jiaoda Withub Information Industrial Co's Interest Expense for the months ended in Dec. 2023 was HK$0.00 Mil. Its Operating Income for the months ended in Dec. 2023 was HK$-0.82 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was HK$0.00 Mil.

Shanghai Jiaoda Withub Information Industrial Co's Interest Coverage for the quarter that ended in Dec. 2023 is

Shanghai Jiaoda Withub Information Industrial Co had no long-term debt (1).

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

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Shanghai Jiaoda Withub Information Industrial Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

Shanghai Jiaoda Withub Information Industrial Co's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(2.508 + 0) / 61.972
=0.04

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.

Shanghai Jiaoda Withub Information Industrial Co has a Z-score of -1.73, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of -1.73 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.


Shanghai Jiaoda Withub Information Industrial Co  (HKSE:08205) 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.

Shanghai Jiaoda Withub Information Industrial Co has the Financial Strength Rank of 6.


Shanghai Jiaoda Withub Information Industrial Co Financial Strength Related Terms

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Shanghai Jiaoda Withub Information Industrial Co (HKSE:08205) Business Description

Traded in Other Exchanges
N/A
Address
Building A, No. 951 Panyu Road, Shanghai Jiaoda Withub Information Park, Shanghai, CHN, 200030
Shanghai Jiaoda Withub Information Industrial Co Ltd is engaged in computer network and internet security integration, application software development, building intelligent system integration, and information technology products sales agent. The business of company operates through two segments that include Business application project and application software & Sales of Products. The Business Application Project and Application Software segment is engaged in the development and provision of business application project services, including business solutions, application software, installation & maintenance services, and data security products. The Business Application Solutions generate maximum revenue for the company. It offers its services only to the People's Republic of China region.

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